Freightways posts strong numbers
Logistics firm posts improved revenue and profit figures for six months to December, keeps lid on interests costs despite borrowing an additional $19 million for acquisitions.
Logistics firm posts improved revenue and profit figures for six months to December, keeps lid on interests costs despite borrowing an additional $19 million for acquisitions.
Freightways (NZX: FRE) has reported strong revenue and profit growth for the six months to December 21.
In a release to the NZX, the logistics and information management firm said operating revenue for the period of $192 million was up 9% on the same period last year.
Profit figures showed similar growth with EBITDA of $36 million (up 8%) and EBITA of $31 million (up 9%).
Growth was primarily in the information management division, with revenue increasing 44% to $44 million. The larger express packing and business mail division saw revenue increase 6% to $149 million.
Renegotiated finance facilities saw lower borrowing costs, with interest costs remaining steady at $6.9 million despite $18.7 million in additional borrowing to acquire Iron Mountain New Zealand and Sydney-based Filesaver Pty.
The company booked a non-recurring EBITA benefit of $700,000 after tax as a result of proceeds from a Christchurch earthquake insurance claim.
The results are in line with analysts’ expectations. Forsyth Barr has a “buy” recommendation for the company’s shares.
Shares in Freightways were changing hands for $3.78 at the close of trading yesterday.
They were down to $3.75 in early morning trading.