The Team's Board Report - Mainfreight
The Team's Board Report - Mainfreight
The Team's Board Report - Mainfreight
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2<br />
Managing Director’s Comment<br />
Welcome to <strong>The</strong> Team’s <strong>Board</strong><br />
<strong>Report</strong>, where we are able to keep<br />
our team members, customers and<br />
shareholders abreast of the<br />
activities and development of the<br />
<strong>Mainfreight</strong> Group as we expand<br />
our network around the world.<br />
We have completed the release<br />
of our financial results for the past<br />
year to 31 March 2010.<br />
<strong>The</strong>se results saw <strong>Mainfreight</strong><br />
produce record revenue of<br />
NZ$1.3 billion; record EBITDA<br />
(that is earnings before interest,<br />
tax, depreciation and amortisation)<br />
of NZ$91.6 million, and a record<br />
net profit before abnormals of<br />
NZ$47.2 million.<br />
All of this has been achieved in<br />
trading conditions that remain<br />
difficult in most world economies,<br />
and while we focused on building<br />
our business; increasing our<br />
number of branches, developing<br />
and introducing new logistics<br />
services, and completing the<br />
acquisition of our largest<br />
transaction, the Wim Bosman<br />
Group, a Netherlands-based<br />
integrated logistics and transport<br />
business.<br />
It is important to understand the<br />
significance of this transaction to<br />
<strong>Mainfreight</strong>. It is a strategic step,<br />
not transacted just for growth, but<br />
because of the specific nature of<br />
the Wim Bosman company, which<br />
is an exceptional fit to the existing<br />
business and culture of <strong>Mainfreight</strong>.<br />
With the Wim Bosman Group we<br />
are able to deepen our strategic<br />
position; to offer our customers<br />
world class service in another<br />
region, with the same high quality<br />
approach to LCL freight as we do<br />
everywhere else. We now have the<br />
opportunity to serve a larger market<br />
with more customers than we have<br />
ever had access to before.<br />
This acquisition is a significant step<br />
for <strong>Mainfreight</strong>; our first foray into<br />
Europe, continuing the goal of<br />
having our global logistics<br />
organisation located in all the<br />
trading nations of the world.<br />
Further we also took the<br />
opportunity to open our first office<br />
on the South American continent,<br />
in Santiago, Chile for CaroTrans.<br />
Welcome to these new members<br />
of the <strong>Mainfreight</strong> global family!<br />
We are sure you will now know you<br />
have become part of an exciting<br />
organisation that will provide you<br />
with security and development in<br />
your working career, excitement as<br />
we continue our growth, and a little<br />
fun as we provide our customers<br />
with the very best possible levels<br />
of service, all with a smile and the<br />
knowledge we have been useful.<br />
In New Zealand and Australia, we<br />
have the opportunity to add a<br />
greater degree of expertise through<br />
incorporating the disciplines we are<br />
seeing in European freight handling<br />
initiatives. <strong>The</strong> use of electric<br />
forklifts supplemented by pallet<br />
jacks, eliminates the overuse of<br />
gas and diesel hoists, improving<br />
our efficiency on the dock with<br />
the additional benefits of reduced<br />
carbon emissions, better safety<br />
and lower costs. Combining this<br />
with more end-loading of Pick Up<br />
and Delivery, and Linehaul vehicles,<br />
we will also improve our turnaround<br />
times.<br />
Our International operations across<br />
Australasia, Asia and the United<br />
States of America must focus on an<br />
improved ROR (return on revenue).<br />
We also require more development<br />
of our own network; increasing the<br />
trade between our operations<br />
around the world will be important<br />
for our customers’ and our own<br />
success.<br />
In Europe, we have great<br />
opportunity to build on the<br />
excellent network that has been<br />
created. Adoption of <strong>Mainfreight</strong>’s<br />
operating principles, financial<br />
disciplines and aggressive sales<br />
development programmes will<br />
enable the Wim Bosman Group<br />
to become a significant contributor<br />
to the <strong>Mainfreight</strong> network.<br />
Embracing new initiatives,<br />
operational and business practices<br />
that are succeeding in our<br />
operations across different parts<br />
of the world is the key to delivering<br />
better service for our customers,<br />
and increased profitability.<br />
No matter where you are in our<br />
business, adopt an open mind to<br />
change.<br />
Whilst discussing quality and<br />
image, <strong>Mainfreight</strong> has been<br />
around far too long to still have<br />
transport operations with unsealed<br />
terminals. Whether it is Gore,<br />
Greymouth, Townsville or Ploieşti,<br />
please ensure our image is<br />
protected with well maintained<br />
facilities, no matter their size.<br />
This past year has been a defining<br />
period for our business. Thank you<br />
all for your efforts. We have a new<br />
and exciting journey ahead of us.<br />
Let us get on and make a<br />
difference. Be useful and add a<br />
smile for our customers and team<br />
mates.<br />
Don Braid