PGG Wrightson has returned to profitability and recorded a
$42.3 million after-tax profit for the year to June.
That compared with a $306.5 million loss last year, driven by
the company's decision to write off goodwill of $321.1
million that largely arose as an accounting entity from the
2005 merger of Pyne Gould Guinness and Wrightson.
This year, PGW achieved operating profit of $58.7 million, up
from $45.8 million last year, while cash from operating
activities grew by $15.5 million to $54.8 million.
The company will pay a fully imputed dividend of 3.5c per
share, which comprises a final dividend of 2.5c and an
additional special dividend of 1c to recognise the strong
cash flows in the past year.
That brings the total dividends paid for the full year to
5.5c per share.
This year's strong financial result demonstrated the overall
strength of the company, chief executive Mark Dewdney said.
The company had recently undertaken ''a significant
exercise'' to refresh the PGW Group strategic plan and it was
now being implemented at both group and individual business
The company would outline key elements of the plan to
shareholders and the market in the coming months, he said.
PGW was challenging every business unit to grow market share.
The outlook for its core sheep, beef, arable, horticulture
and viticulture markets was positive and would continue to be
a major focus.
In addition, it was going to put more emphasis on the dairy,
water and agronomy sectors in New Zealand and also saw
potential to grow strongly in South America and other
international markets, he said.
PGW was confident it could deliver further increases on this
year's operating ebitda result.
However, given the volatility in the forecast milk price and
the need to assess the likely impact for the company's
clients and the sector, it intended to provide a forecast for
the current fiscal year at the time of the annual
shareholders' meeting in October, he said.
Forsyth Barr broker Andrew Rooney said the strong operating
ebitda was above both Forsyth Barr's expectations and
previous company guidance.
Stronger performances from both the rural supplies and the
seed and grain business segments were pleasing, albeit the
underlying commodity price backdrop had been particularly
favourable through the year, he said.