Grocorp not so fruitful after heavy debt repayment

WELLINGTON - Orchardist Grocorp's profit halved in the six months to April 30 as it paid back debt.

Bottom-line profit fell to $265,000 from $499,000 in the previous first-half period.

Grocorp chairman Grant Sinclair said the result included a net write-off of $550,000 previously owed to the ANZ Bank.

Mr Sinclair said the result was largely an estimate of likely final payouts from Enza and Grocorp's own overseas customer.

Revenue of $5.03 million, down 12 per cent, was based on the sale of 230,000 cartons of fruit.

No dividend will be paid.

Mr Sinclair said hail damage at two orchards reduced exports 35 per cent.

However, the insurance claim had been accepted and final proceeds would be received soon.

Total annual exports were estimated to achieve 411,000 cartons, down from 610,000 last year.

Grocorp said 691,000 shares received as a result of the incorporation of Enza, with a net asset backing of $3.46 million, were not included in the company's financial statement.

The shares had traded between 50c and $1 in small parcels since listing.

Grocorp's own shares closed unchanged at 13.6c on Friday.

- NZPA