Trucking along
Mainfreight has taken arms against a sea of troubles at home and overseas to deliver a record annual profit.
The NZX-listed Auckland trucking and logistics business yesterday revealed a $89.6 million annual bottom-line net profit, up 36 per cent on 2013’s result. Revenue firmed 2 per cent to $1.92 billion.
Trading profits improved globally except in Europe, where they fell 5.6 per cent.
Mainfreight chief executive Don Braid said the result was encouraging, but he was confident the company would do better in the new financial year. Financial performance had improved significantly in the second half of the year.
Further improvement had occurred in the first two months of the new year, he said.
The latest result included abnormal gains of $11.8m, mainly from the settlement of Mainfreight’s dispute with the seller of Europe’s Wim Bosman transport group it bought in 2011.
The 2012 result included abnormal losses of $3.3m related to getting Mainfreight’s brand into Europe via Bosman.
The pre-tax profit, after abnormals, was up 28.4 per cent to $121.8m.
A final 19c dividend, payable on July 18, increases the annual rate 5c to 32c a share. The dividend yield, excluding imputation credits, is 2.3 per cent on yesterday closing share price of $14, up $1.08.
Net tangible asset backing rose from $1.69c to $2.28c.
Cashflow from operations was $120.4m, up 44.7 per cent.
Revenue for the New Zealand business increased 6.6 per cent to $505m, while earnings before interest, tax, depreciation and amortisation climbed 12.4 per cent to $67m.