Mainfreight's home territory performs

By PAM GRAHAM

The home base Mainfreight seeks to protect by taking over Owens Group was the best performer in first-quarter results issued yesterday.

Mainfreight said profit rose 81 per cent to $1.142 million in the quarter. The quarter is the company's quietest and the improvement from a year ago was put down to a 10.7 per cent increase in revenue to $111.4 million and improved margins. Efficiency gains, rather than price increases to customers were driving margins, said managing director Don Braid.

He is waiting for Owens to issue an independent report and recommendation on his company's $1.03 a share bid. Mainfreight mailed the bid on Friday and Owens has two weeks to respond.

If successful Mainfreight will increase its assets by two-thirds and revenue by 80 per cent. It is protecting and strengthening its New Zealand base as Australia's Toll Holdings bids for Tranz Rail with a stated intention of expanding across the supply chain.

The bid is Mainfreight's first for a publicly traded rival but it argues it has experience at merging businesses after buying Mogal in 1987 and Daily Freightways in 1994. Braid said buying Owens would increase Mainfreight's earnings immediately. The Owens brand would be kept.