Chairman Rob Hewett said organisational changes during the year contributed to the company's improved performance and the change to three species units would increase visibility of performance and strategy across species and establish a broader range of opportunities for any future capital structure initiatives.
Mr Hewett said in a press release yesterday the timing was right for the company to look at capital structure options, given its improved profitability, rising global demand for protein, improved outlook for farm profitability and ongoing interest from customers to gain security of supply.
An investment bank would be appointed to help Silver Fern with the process, Mr Hewett said yesterday.
Any new capital would allow the company to accelerate the reduction of bank debt and the associated impact of debt servicing, which currently cost the business $35 million a year.
While a full audited financial result would be announced next month, Silver Fern Farms was on track to deliver a ''significantly improved'' result for the year to September, Mr Hewett said.
That followed a strategic review of the business by PricewaterhouseCoopers and a focus on debt reduction.
The company paid down $100 million in debt during the year. Pre-tax earnings were expected to be $5 million to $7 million.
Last year, it made a pre-tax loss of $36.5 million and the year before had a loss of $42.3 million.
''We know many of our farmer shareholders see our profitability as a priority for the company this season, which is what we have delivered,'' Mr Hewett said.
There was still work to do and there were still some big targets this year that it needed to meet, he said.
When it came to industry rationalisation, Mr Hewett said he talked regularly with Alliance Group in particular.
All parties acknowledged that change needed to happen but getting to the point where it could happen was the issue.
There was no doubt the industry needed recapitalisation to grow - as did Silver Fern Farms, he said.
Silver Fern Farms launched its supplier roadshow meetings in Waipukurau yesterday and Mr Hewett described the mood at the launch as buoyant.
Farmers were pleased to see it had been a profitable year and debt had been paid down.
The market outlook was positive, which should give them good confidence going into the coming season.
A $100 lamb mark was expected to be achieved given current market signals.
Beef should trade in the range of 450c-550c a kg and venison was expected to stabilise at recent levels of 680c-800c a kg.
While this year was not going to be an easy one, the company's board was united and it had a strategy that was working, Mr Hewett said.
