KEY POINTS:
Acquisitions have steered Freightways to a record result and the listed courier company is on the lookout for more.
Net profit for the year ending June 30 was $25.1 million, up from $24.3 million, on the back of a 10 per cent growth in revenue to $283.6 million.
Managing director Dean Bracewell said he was pleased with the result in light of a challenging core market.
"The acquisition activity has obviously been important for us," Bracewell said.
"We saw the market tightening up a little bit in New Zealand. Rather than bury our heads in the sand, we got out there and we invested in some growth opportunities."
Acquisitions accounted for half the growth in revenue.
Freightways shares closed down 4c yesterday at $3.81 on a weaker market.
Goldman Sachs JBWere analyst Marcus Curley said it was a modest performance.
"And given Goldman Sachs' expectation of a further slowdown in economic activity in New Zealand, the outlook for the next 12 months looks to be fairly challenging," Curley said.
Last year Freightways bought data storage firm DataBank with operations in New South Wales and Victoria. A Queensland branch was opened in January.
Last month the company added to its Australian information management operations with the purchase of Brisbane-based Document Destruction and Paper Recycling, Queensland firm Shred-X and Victoria Paper Recyclers.
Bracewell said the fact that most of the Australian information management market was held by one player made it an attractive sector.
"You've got one big player and we think there should be an opportunity for somebody else to have some of that," he said.
The information management market in Australia was worth about A$80 million but held the potential for more than A$200 million a year.
The company also bought document storage firm MSS Christchurch last month.
Freightways, which now employs more than 2700 people, would continue to explore acquisition opportunities, Bracewell said.
"We operate in three markets, we don't put borders around where we do operate and as far as geography goes it's just at this stage it happens to be New Zealand and now Australia."
The Australian information management business had its own dedicated delivery fleet.
"We'd never say never to operating an express package [service] in Aussie but we haven't decided to go there yet."
FREIGHTWAYS
Revenue
2006 - $256.9m
2007 - $283.6m
Ebitda
2006 - $58.3m
2007 - $62.9m
Full-year dividend
2006 - 17.25cps
2007 - 18cps
