Allied Express - Comprehensive Analysis Report

Summary

Allied Express is a large, independently owned courier and express freight company in Australia, established in 1978. It provides diverse and flexible transport and logistics services to clients ranging from individuals to large corporations. The company aims to be a transport partner, mirroring its clients' service, delivery regime, and commitment to their customers.

1. Strategic Focus & Objectives

Core Objectives

• Allied Express focuses on providing courier, local and national distribution, and third-party logistics services.

• The company strives to reliably solve transport problems locally and nationally, positioning itself as a key transport partner for its clients.

Specialization Areas

• Courier services (normal, VIP, executive, and gold).

• Taxi-Truck services (VIP and executive).

• Local and National distribution.

• Third-party logistics, including warehousing and distribution.

• The company differentiates itself by handling larger items, catering to SMEs and large corporates.

Target Markets

• The company's services cater to a wide range of clients, from individuals to SMEs and large corporations across Australia.

• Allied Express strategically positions itself to accommodate various client needs through its diverse service offerings.

2. Financial Overview

Funding History

• Allied Express was acquired by Freightways, a New Zealand-based express delivery group, on September 30, 2022, for A$160 million.

• The deal was funded by A$100 million Freightways share issuance to the McDowell family and A$60 million of cash drawn from Freightways' debt facilities.

In the financial year 2023:

• Forecast revenue: A$215 million

• EBITA: A$20.5 million

3. Product Pipeline

There is no specific mention of a development pipeline.

4. Technology & Innovation

Technology Stack

• Allied Express emphasizes a "technology-first approach."

• E-commerce: Fast, global delivery with website integration and real-time tracking for B2C shipments.

5. Leadership & Management

Executive Team

• Colin McDowell: Executive Chairman and Chief Executive Officer

• Michelle McDowell: Managing Director

• Marko Ilijevski: NSW Depot Manager

• Estelle Fajloun: Customer Service Manager

• Melissa Palmer: National Customer Relationships Manager

• Amanda Nelson: National Pallet Controller

• Shaun Gambin: AM Linehaul Supervisor

• Chantelle Alameddine: National Administration Assistant

• Eleisha Birken: State Sales Manager

• Kirby Hodkinson: Client Relationship Manager

• Kim Mackenzie: Key Account Manager

• John Richardson: National Operations Manager

• James Yang: Network System Engineer

• Jackie Hamad: National Customer Service

• Danielle Taff: Customer Relations Manager

• Cody Rogan: Brisbane Operations Manager

• Ashley Prasad: Talent Search Manager

• Aaron Turton: Fleet Manager

• Sharon Schmecht: Customer Relationship Manager

• Vaughan Olsen: Supervisor

• Tracey Titlow: National Sales Manager

• Nick Cittadino: Senior Business Development

• Michelle Grange: PA to Managing

• Raed Assafiri: AM Operations Manager

• Travis Young: SA Branch Manager

• Robert A: NSW Construction Manager

• Shaun Kelly: Senior Sales Manager

• Susanne Penley: Customer Service Manager

• Scott Rogers: QLD Depot Manager

• Sheryl Christen: General Manager-Client Relationship

• Mike Feltersnat: CEO

• Mellisa Landon: National Customer Service

• Matt Robinson: Depot Operations Manager

• Margaret Jackson: Chief Financial Officer

• Marc Gonzales: NSW depot Manager

• Lothar Biermann: General Manager

• Karen Turner: General Manager-Client Services

• Joseph Yousefi: President

• Jackie Hamad

• George Iliadis

• Gary Williamson

• Frank Fagot

• Felicity Fox

• Chris Dunn

• Amanda Feng

• Allan Wawi

• Agnes Vaitagutu

Recent Leadership Changes

• Allied Express was acquired by Freightways on September 30, 2022.

• The McDowell family became substantial shareholders in Freightways and continue to work in the business.

6. Competitive Analysis

Major Competitors

• Apollo LogiSolutions

• National Air Cargo

• Rhenus Logistics South Africa

• MAO (Mid-America Overseas)

• Direct Couriers

• Couriers Please

• Hunter Express

• Zoom2u

• Aramex Australia (formerly Fastway Couriers)

• Australia Post

• DHL

• FedEx

• TNT Express

• UPS

7. Market Analysis

Market Overview

• Allied Express operates in the road freight transport industry in Australia.

• The company has benefited from the acceleration of eCommerce, which has increased demand for its services.

8. Strategic Partnerships

• Allied Express is now part of the Freightways group.

9. Operational Insights

• Allied Express operates a fleet of over 1,000 vehicles.

• The company has offices in all major mainland capital cities.

• Allied Express employs 450 staff and has 700 contractors.

• The company serves 1,750 clients, ranging from SMEs to large corporations.

• The company has a national footprint with leased depots in all major Australian cities.

10. Future Outlook

Strategic Roadmap

• Freightways expects the Allied Express acquisition to be earnings per share (EPS) accretive from completion and deliver in excess of A$20 million EBITA in FY23 on a full-year basis.

• The acquisition provides Freightways with a platform for future growth in the Australian market and a step into a new niche activity.

• Allied Express's specialized logistics capabilities and ability to handle larger items complement Freightways' core capabilities in express pick up, processing, and delivery, enhancing the combined group's offering.