Shares in Scales Corp bounded up more than 5% on new full-year guidance yesterday, with revenue, profit and dividends all forecast to be up by a range of 45%-75%.
Scales prospectus forecast for earnings before interest, tax, depreciation and amortisation (Ebitda) was $41.2million, but was revised up by 45%-53% yesterday to a range from $60million-$63million, while the after-tax profit forecast of $20.8million is now expected in a range of $34.7million-$36.8million; a boost of 66%-76%.
Its shares rose 5.2%, or 12c, to $2.40 after the announcement.
For its year to December, directors will in January pay a fully imputed interim dividend and special dividends totalling 10.5c/share, compared with 3c a year ago, a 250% rise.
Scales' managing director Andy Borland said the financial results from all divisions were expected to be higher than the 2014 actual results and the prospectus forecasts, for 2015.
He said there was a particularly strong performance from the horticulture division and lower finance costs as a result of a better debt position, and reduced interest rates.
Scales' average net debt will have reduced from $40.8million in 2014 to between $33million and $36million.
Apples started the year well with a record crop, including especially strong volumes of premium varieties, there were improvements in foreign exchange rates, and better than usual shipping rates.
Proceeds from hail insurance also offset some loss of apple volumes, Mr Borland said.
He said the food ingredients division is likely to deliver a record sales year, both in volumes and revenue, and juice concentrate production had been working 24/7 for most of the year.
Scales Corp
• Established 1897 as shipping company, employs more than 500 staff around country.
• Diversified agribusiness, divisions in horticulture, storage and logistics, food ingredients.
- Source: Scales
