Diversifying geographically has paid off for Freightways with the express package and information management company's full year profits up 24 per cent.
The company today announced a net profit of $37 million for the 12 months to June 30, up from $29.9m a year ago. This beat a $34.9m forecast by brokerage Forsyth Barr. Operating revenues rose 8 per cent on last year to $382.5m.
The firm's shares fell 0.8 per cent to $3.87 in early trade. They have gained about a quarter in value over the past 12 months.
Freightways' information management division, which generates about a quarter of total earnings, was the standout performer with the unit producing operating revenues of $92m - up 21 per cent on a year ago.
The brands within this division include Online Security Services, Archive Security, Document Destruction Services and Data Security Services.
In Australia it operates through DataBank, Archive Security, Filesaver and Shred-X.
The firm's express package and business mail division, which accounts for the remainder of its earnings, reported a 5 per cent gain in operating revenue to $292m, largely reflecting a softer second half performance.
Freightways declared a final dividend of 9.5 cents per share, fully imputed at a tax rate of 30 per cent. This represents a payout of approximately $14.6 million compared with $11.2 million in the previous year.
The company's managing director Dean Bracewell said the result reflected the successful execution of growth strategies across its divisions, increasing volumes from customers, and price increases.
He said the company will maintain its strategy to develop growth opportunities in express management, including innovating new services where there was demand, and developing its information management footprint in Australia.
Freightways should experience gradual improvement, he said, however the background of an uncertain global economy may impact the New Zealand and Australian economies and this would influence its performance. The company will continue to seek strategic growth opportunities, he said.
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