29 Oct 2011

Freightways eyes acquisition for growth

8:16 am on 29 October 2011

Freightways is on the lookout for new acquisitions beyond Australasia to boost growth.

On Thursday the courier and information storage firm reported its highest-ever first quarter result since it listed eight years ago with profits up by 19% on the September 2010 quarter at $8 million.

Revenue is up 9% to $93 million. The result does not include a one-off $900,000 benefit from insurance payouts from an earthquake claim.

Managing director Dean Bracewell says the core express package business has reported double digit earnings in three of the last four quarters, and the information management division has recorded strong growth.

He says Freightways' latest acquisition, Iron Mountain, is being merged with existing information management operations and the company is now looking for start ups and other businesses to buy that complement Freightways business.

Meanwhile, shareholders voted for a $13,000 dollar increase in directors' fees to $65,000, which was supported by the Shareholders Association.