Mainfreight's directors vague about latest trading results

By BRIAN GAYNOR

Mainfreight's directors were frustratingly secretive at yesterday's annual meeting. Although the mood was fairly upbeat they refused to give any specific information on trading results since the March 31 balance date.

Executive chairman Bruce Plested did not mention the subject in his formal address and managing director Don Baird confined himself to the following comment: "We expect our returns to continue to improve from the finish of 2002."

When asked from the floor about the performance of the company in the April to July period, Plested said: "We are satisfied with the result. It is where we would expect it to be."

These comments were frustratingly vague, particularly after Owens warned at its annual meeting on Monday of troubling times ahead due to the uncertain outlook for the New Zealand and world economies.

Baird also expects some flattening in the New Zealand economy but believes "our improvements in Australia and the United States should more than compensate".

Shareholders raised three major concerns from the floor: payments to auditors, the balance sheet and the number of board meetings.

Plested said audit fees had increased because of the group's expansion in Australia.

He said that payment to auditors for non-audit work was low and the company had spent no more than $200,000 on consulting fees since its formation in 1978.

The chairman admitted that the shareholders equity ratio of 35 per cent was too low and said he would like to see it raised to 40 per cent.

Mainfreight, a transport company, has more money in property than vehicles and equipment.

On the number of board meetings, Plested argued that the directors had a close and informal relationship and there was no need to have more than four board meetings a year.

Baird said management could spend too much time and money preparing for board meetings if they were held too often.