Freightways has delivered increased revenue, profit and dividends for its full year to June, while signalling the year ahead could be affected by the costs of further investment in some divisions.
Revenue for the New Zealand and Australian carrier was up 5% at $505.3 million, after-tax profit climbed 14% to $49.7 million and the final dividend rose 16% from last year's 12.5c per share to $14.5c.
Managing director Dean Bracewell said the company expected to again improve its overall year-on-year performance, but cautioned results from the express package and business mail divisions would be partly offset by investment in increased capacity for the information management division.
``The information management division is currently expected to perform slightly below the previous corresponding period,'' he said.
That was due in part to having just completed a strong year, but also to some large one-off projects and one-off costs to be incurred next year in relocation of premises in Sydney.
Freightways shares were down slightly at $6.67 following the announcement.
Forsyth Barr broker Damian Foster said Freightways was ``painting a conservative picture'' for the year ahead, particularly for the information management division.
He said the express package service would begin to benefit from the aircraft fleet renewal programme and the Christchurch consolidation in 2017.
Craigs Investment Partners broker Peter McIntyre said it was a ``soft result'', with further write-downs to the aircraft fleet, and it delivered a ``subdued outlook'' for 2017.
``Although growth is still expected at the bottom line, driven by performance in express package and business mail rather than information management.''
Mr Foster noted capital expenditure increased from $17 million last year to $23 million.
He said there was ``scope for small downgrades'' to 2017 estimates, reflecting lower margin expectations at express package and a slower year ahead for information management.
Two one-off costs were excluded from the result. There was a non-recurring charge of $6.3 million from writing down the carrying value of a fleet of aircraft that will be retired this month, and related spare parts. There was also a non-recurring charge of $9 million from the initial write-down of the carrying value of aircraft, related fleet transition costs and property relocation costs.
