Allied Farmers lifts half year profit 17pc

Hawera-based rural services provider Allied Farmers today report a 17 per cent lift in its half year net profit to $1.55 million.

It declared a fully imputed 5cps dividend to be paid on March 24 compared with 3.67cps last year (adjusted for a bonus issue).

Revenue rose 21 per cent to $47.7m and pretax profit rose 15.5 per cent to $2.3 million.

Chairman Brian Train said the rise in revenue was partly the result of the purchase of Allied Pine Ltd.

Adjusted earnings per share rose to 9.76c from 8.33c.

He said the Rural Services division continued to provide the bulk of earnings.

The cold and wet spring and early summer retarded growth conditions in the North Island.

Allied said it increased its market share of the stock destined to be exported in its processed form.

Exports of live dairy stock to China continued with a shipment also sent to Mexico.

Allied Farmers Finance's contribution exceeded that of last year while the Real Estate division made a "worthy" contribution.

Mr Train said the high New Zealand dollar was placing immense pressure on the forestry and million sector, affecting Allied Pine's performance.

He said the recent announcement from Fonterra of an increased end of season dairy payout would provide the dairy sector with added confidence.

"This along with the company's current performance will allow the year-end result to be on target to achieve budget," Mr Train said.

Allied Farmers shares closed yesterday on $2.50, having traded between $1.40 and $2.70 in the last 12 months.

- NZPA