Rebate for Ravensdown shareholders

Down  is paying out all this year's operating profit as a $50 a tonne rebate to shareholders.

A fully paid-up shareholder who applied 150 tonnes of fertiliser during the year to May 31 would receive a $7500 cash rebate this month, instead of the traditional September payment after the company's annual meeting.

The payments would be welcomed as the agri-sector faced ''some uncertainty'', chairman John Henderson said.

Ravensdown achieved an operating profit of $51.9 million, despite one-off costs associated with the closure of Waikeratu's lime quarry, in the Waikato, due to safety concerns.

Exiting the Ruralco joint venture with ATS (Ashburton Trading Society) and the cost of dealing with two unsold Australian buildings also adversely affected the result.

Revenue, as expected, declined to $716 million after the exiting of the company's loss-making Australian ventures.

The company was ''virtually'' debt-free in 2014-15, compared with owing $355 million in 2012.

More than $33 million was invested in capital infrastructure including loaders, conveyors, roofing, laboratories and blending machinery.

Chief executive Greg Campbell said this year's result was not one-off but built on the back of a solid strategy that had been working since 2013.

In 2013, shareholders missed out on a rebate for the first year in the company's then 35-year history after that loss-making operation in Australia.

''The first year, we bounced back. The second year, we are able to help all those farmers who stuck with us,'' Mr Campbell said.

He remained cautious about trading conditions that might affect fertiliser tonnages in the current year, but was confident that the business fundamentals were strong.

During the past year, the company had also built a team of local animal health and agronomy specialists, while its environmental consultancy was also expanding due to increased demand.

Ravensdown holds its annual meeting in Dunedin on September 14.

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