Mainfreight stays on target

Mainfreight CEO Don Braid

Transport group Mainfreight reported full year net profit before abnormals of $40 million, almost on a par with the previous year's record of $40.8 million.

Total revenue for the year to the end of March increased by 38.8 per cent from the previous year to $1.27 billion, representing a 28.8 per cent rise when foreign exchange is excluded. Organic growth, excluding foreign exchange and acquisitions, improved 5.5 per cent.

Mainfreight said it continued to find growth across all its markets, but in the second half of the financial year results faltered as economies around the world slowed and freight volumes deteriorated.

Trading into the first quarter of the new financial year continued the trend seen in the second half of the latest year, the company said today.

It expected volumes to continue to decline for the immediate future, affecting profitability in the coming year.

"Our response is to manage our business through very strong margin and cost focused branch management, coupled with sales strategies aimed at increasing market share across all sectors."

Mainfreight said it remained focused on growing its logistics network around the world.

The strategy had resulted in an expanded customer base, leaving the company well positioned in all its markets to take advantage of any upturn in the economic cycle.

A full year dividend of 18.5c per share will be paid, compared with 18c last year.

Mainfreight shares closed at $4.90 yesterday, having climbed from $3.28 in early March but still well down on the $7.45 last June.

- NZPA