Business

Fliway expects customer loss to hit revenues

15:21 pm on 13 June 2016

Freight transport company Fliway Group says next year's revenue and sales will be significantly less than expected after losing a major customer in a competitive bid.

Fliway, which listed on the New Zealand sharemarket a little over a year ago, said the customer contributed between 4 and 5 percent of its total revenue and estimated the impact on the underlying profit could be about 10 percent, as the management works to mitigate the loss of income.

However, Fliway said the loss of business would not have an impact on this year's result, which ends this month.

The company said it was disappointed, but would continue to grow its network of more than 1000 customers, built up over the past 40 years.

In the meantime, it was looking at cutting some costs, which would not have any impact on customer service.