Information management and courier company Freightways has reported a strong financial result, as well as a deal to buy Australia's Allied Express for $178 million (A$160m).
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A surge in demand and spikes in new customers following Covid-19 lockdowns provided a "reasonable" year-end result and increased the company's market share overall, the company said.
Key numbers for the year ended June compared to a year ago:
- Net profit $70.2m vs $47.9m
- Revenue $873.1m vs $800.5m
- Underlying profit $130.2m vs $128.9m
- FY dividend 37 cents a share vs 33.5 cps
Allied Express, one of Australia's largest independently owned courier and express freight providers with a fleet of more than 1000 vehicles operating in all major centres, also offered specialised logistics capabilities.
"This transaction gives us a successful model for enhancing our offering on both sides of the Tasman, leveraging Freightways' core capabilities in express pick up, processing and delivery while creating a niche in oversized freight at the same time," Freightways chief executive Mark Troughear said.
"Freightways never stands still. Our first horizon services, developed over decades, are the backbone of our business, but our team is also focused on the future."
Freightways was good at growing new businesses and expected Allied Express to fit well with the company's overall portfolio, with the deal set to be completed by the end of September.
There were opportunities to grow in Australia and New Zealand, Troughear said.
Freightways will pay Allied's shareholders $68.6m (A$60m) in cash, funded with debt, while Allied shareholders would become a substantial shareholder in Freightways, with about a 6 percent stake in the enlarged company.