Restructured Owens Group reaps rewards

Profit at the end of the year stood at $4.6 million compared to $276,000 previously. Last year's figure included abnormal costs of $5.38 million, mainly as a result of rationalising and modernising the company's fleet of leased refrigerated containers.

Sales in New Zealand jumped 10% to $240 million and 9% in Australian to $143 million, while the operating surplus before tax and abnormals rose to $7.9 million from $6.5 million previously.

Chairman Norman Geary says the final result is satisfactory given the recent difficult and mixed economic conditions in both Australia and New Zealand.

"To grow revenues within Australia by just under 10% in a sluggish economy and a highly competitive environment is encouraging, as is the improvement in profits in both markets.

"Our strategy of building business through a strong focus on customer service and aggressive revenue growth is beginning to produce results."

Mr Geary says the company is also benefiting from having a wide revenue base.

"The broadly based nature of our activities which encompasses road transport, freight forwarding, ships agencies, container services and hire equipment effectively spreads the company's risks.

"We are not a narrowly based road transport operator.

The company says its refrigerated freight business was the most improved performer during the year, with its hire business, New Zealand freight forwarding, tankers and ships agencies also doing well.

However low levels of imports have put pressure on the company's container services and freight forwarding in Australia.

Norman Geary says while a tougher international economy can't be ruled, Owens is well placed for future growth and expects to make further significant progress during the year.

The search for a new CEO for the company is continuing and an appointment may be made sometime next month to replace Ian Newman, who stood down for personal reasons in January.

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