Sanford still paying for forex policies

Fishing company Sanford's half year report yesterday showed a drop in profits and continued losses from its foreign exchange policies.

Turnover increased 10.2 per cent to just over $183 million, but profit dropped to $11.8 million. Last year's profit of $12.1 million was inflated by asset sales of almost $4 million.

The company's foreign exchange policies, which came under fire during the last annual general meeting, lost $11.5 million, compared with $15.9 million the previous year.

The report said foreign exchange losses were expected to lessen through the second half of the year and would show a profit next year.

Sanford said increased sales of skipjack tuna and orange roughy offset declines in hoki, ling, mussels and salmon.

A dividend of 8c a share would be paid to shareholders next month.

The company also said yesterday it had acquired a "strategic" 9.4 per cent stake in Canadian seafood company High Liner Foods.

Sanford said the holding in High Liner - which produces, processes and markets fresh fish and frozen seafood products - would help it secure preferential access to distribution channels in key export markets.

* Farming and rural services firm Allied Farmers has produced a net profit of $1.85 million for the six months to December 31.

Revenue fell 3 per cent on the previous year at $63 million.

Fifty per cent of the tax paid profit had been allocated towards a fully imputed interim dividend of 7c a share, the company said.

Allied, which will list in May, has farming activities in Taranaki, Waikato the King Country and Manawatu.

The 89-year-old company has a range of business activities including livestock trading, real estate, rural merchandise and equipment finance.

Chairman Brian Train said the first half had produced higher returns in all core divisions - merchandise, livestock and real estate. Costs had been contained and its Farmers Wool business had traded in line with the same period last year.

The 7c dividend will be paid on May 15.

- NZPA