New Zealand King Salmon Investments reached a deal with a supplier over extra costs.
New Zealand King Salmon Investments reached a deal with a supplier over extra costs.
New Zealand King Salmon Investments will get a $1.8 million boost to annual profit after reaching a deal with a supplier over extra costs the fishing farmer had worn on its books in earlier years.
The Nelson-based company will get a cash payment this month which will give a one-offlift to profit after reaching a deal with "a key supplier in regards to additional costs incurred and absorbed in the current and prior financial years," managing director Grant Rosewarne said in a statement.
King Salmon noted a contingency in its half-year result that it had an unresolved dispute "with a feed supplier regarding a feed quality issue".
In March, the company posted a 52 per cent gain in first-half profit to $8.7m and said it was on track to meet prospectus guidance for a profit of $10m on revenue of $130.1m in the year ending June 30, 2017.
Today, King Salmon said its fish performance metrics in the peak summer period were in line with overall expectations.
The shares last traded at $1.32, up from their $1.12 listing price in an initial public offering last October. King Salmon raised $70m of which $30m went to repay debt and fund future investment, with the rest paying existing shareholders who sold down their holdings.
