All Mainfreight's global divisions booked improved performances, prompting resumption of a discretionary staff bonus scheme.
For the year to March, Mainfreight announced yesterday a net surplus before abnormals of $47.24 million from sales revenue of $1.34 billion, with earnings before interest, tax, depreciation and amortisation also at a record $91.58 million.
However, Mainfreight's managing director, Don Braid, was scathing of the deferred tax liability, labelling it a "ludicrous and absurd legislation change".
"Abnormal costs were incurred as changes to the IFRS [International Financial Reporting Standards] accounting rules were applied; in particular, the booking of a deferred tax liability for tax depreciation, a non-recurring, non-cash item as a result of the Government's ludicrous and absurd legislation change, effective 1 May 2010," Mr Braid said.
Shares in Mainfreight were up 8c to trade around $9.34 after the announcement.
Mr Braid declared an 11c half-year dividend, taking the full-year dividend to 20c, fully imputed.
"This past year has been a defining period for Mainfreight as we find ourselves in a position to take advantage of the scale that our growing global presence will offer; a very satisfactory financial performance," he said.
Craigs Investment Partners broker Peter McIntyre highlighted the deferred tax liability was a "one off" charge that confused an otherwise "very strong result", and Mainfreight had an optimistic outlook for the 2011-12 financial year.
"With about 50% of earnings now from offshore, investors will recognise this is not a domestic company any more but global company. It's likely its shares may be re-rated [upward]," Mr McIntyre said.
Forsyth Barr broker Peter Young said it was a "very good result", with the good momentum seen in third-quarter trading continuing into the fourth.
"There have not been many companies which have delivered the same sort of profit growth that Mainfreight has reported. US operations are showing signs of improving and with their European operations coming into play next full year, we can expect to see 20% or more profit growth," Mr Young said.
Mr Braid said Mainfreight had completed the acquisition of the Netherlands-based Wim Bosman Group with its 14 branches in six European countries. The initial purchase price was 110 million - about $NZ205 million at the time.
"This is a strong strategic fit for Mainfreight and will provide an excellent base from which to expand further in the region, and to increase trade significantly with our Asian and United States operations," Mr Braid said.
Mr McIntyre said the Wim Bosman purchase was ideal for Mainfreight, in that it paved the way to expand European distribution.
Mainfreight has also entered South America, having established a "beachhead" operation in Chile's capital, Santiago.
