MFT - Mainfreight. Global Freight & Logistics

[Snow Leopard]

Full year is out.
Not too shabby.

[Bob Marley]

Paper mon, that is a fantastic result from the big blue trucks mon.

"...One love...."

[Futurz]

Last trade $5.50!

This has been one of best purchases in NZ in recent times. Up 91% in 10 months Only wish I'd brought more...

[Snow Leopard]

quote:Originally posted by Bob Marley 23/02/2006


...Bob is now predicting FY06 NPAT of $29m mon...

Spot on.

[Snow Leopard]

quote:Originally posted by Paper Tiger

Should Hirepool sell for the $150m talked about then that would put $36m+ cash in Mainfreights pocket which could half their borrowings.
Of course the could also spend some of it on a new acquisition.

quote:from todays Analyst Presentation
Sales process underway
Our holding 24.5%, Book Value (including Goodwill) $9.9 million
Expect conclusion mid-year
Proceeds from sale to retire Group debt

So they are going to book a very health profit on the sale as well

[limegreen]

quote:Originally posted by Futurz
This has been one of best purchases in NZ in recent times. Up 91% in 10 months Only wish I'd brought more...

Good luck or good planning that this is my sole NZX investment over the recent period[?]
doesn't really matter either way. just enjoyin' the ride[8D][8D][8D][8D]

[The GrandMaster]

quote:Originally posted by Futurz

Last trade $5.50!

This has been one of best purchases in NZ in recent times. Up 91% in 10 months Only wish I'd brought more...

Up 430% since my purchase way back in 2003

[rmbbrave]

Mainfreight on offshore ride
11 June 2006

By TERRY HALL
Mainfreight is doing exceptionally well in the notoriously difficult transport industry, and is proving that its business model can work successfully overseas.


It is becoming a significant player in Australia, the United States and Asia and its rapidly increasing profitability will not go unnoticed by its international competitors. This suggests it could be a takeover target at a time when cashed-up Australian predators are snapping up some of our best companies.

But Marcus Curley, an analyst with Goldman Sachs JBWere, thinks this is unlikely at present. He believes Bruce Plested, one of the founders who has been a key driver of the company's success, has a firm "No Sale" sign on his 20% stake.

Mainfreight has cleverly - some might say luckily - positioned itself to do well overseas in what looks to be a tepid period of growth in its traditional New Zealand business.

In the past year the proportion of earnings from its overseas subsidiaries rose to 43% (from 23% in 2005). Andrew Mortimer, an analyst with First NZ Capital, says he expects this trend to continue, and be enhanced by more favourable currency movements when earnings are translated to Kiwi dollars.

Earnings, for what is the country's largest freight forwarder offering daily services by road, rail, air and sea, have grown strongly over the past two years. In the year to March 31, adjusted net profit after tax rose by 53% to $35.1 million, which was better than analysts' forecasts.

This was driven by the continued benefits of the merger with former rival Owens and the Australian international division which benefited from high-profit-margin business from its Pan Orient Shipping freight forwarding activities. A solid performance also came from its USA international subsidiary which is doing well exporting to Asia and South America. The sizeable fall in the US/ Kiwi exchange rate this year would have been another plus for this division.

The Australian domestic company rebounded in performance with EBITDA (earnings before interest, tax, depreciation and amortisation) rising from $2.5m to $5.9m. It is moving to a new Sydney site to capitalise on this growth.

Closer to home the core New Zealand business showed revenue growth of just 1.5% at $65.4m, though this still represented 51% of operating profits, down from 75% last year. The company is hoping for benefits from its new Auckland super site due to be commissioned in September.

The performance of the New Zealand division will remain critical for the company, in spite of the remarkable rise in the fortunes of its overseas subsidiaries. Chief executive Don Braid said although the results were pleasing, management knew it had a lot of hard, challenging work ahead.

While the parent company may not be for sale, analysts believe Mainfreight will pocket between $22m and $34m from the sale of its 24.5% sale in Rakino, or Hirepool, which is expected to be finalised soon. According to UBS, proceeds from this sale are likely to be used for acquisitions rather than increasing the dividend.

After years in the doldrums after its 1996 listing, the share price has rocketed over the past three years, rising from a low of $1.62 in 2004 to $3.70 last year. So far this year it has risen from $3.48 to $5.80 and was about $5.70 last week.

Rapidly improving earnings have seen analysts re-evaluate its prospects.

Goldman Sachs JBWere lifted its valuation after the result from $3.81 to $5.60, though after the lift in the share price it said it was maintaining a short-term market perform recommendation, while continuing to recommend it as a long-term buy.

GSJBW says Mainfreight trades at similar multiples to Freightways, its closest New Zealand-based peer. Notwithstanding that, Mainfreight does not look expensive compared to the New Zealand market (with a prospective price earnings multiple of 15 times) and international freight forwarders (between 25 and 35 times).

First NZ Capital has a neutral recommendation, des

[hesiod]

With the focus of Wayne B now clearly on Telecom how will this impact upon the continued success of MFT ? TC have a huge amount of work to do to begin to turn their business around for medium / long term growth so I can't see any quick wins. However I am concerned about the losses for this stellar performer.

[Snow Leopard]

hesiod: What are you talking about?