PGG Wrightson chairman Craig Norgate pictured last year at the announcement of the Silver Fern Farms deal.
PGG Wrightson chairman Craig Norgate pictured last year at the announcement of the Silver Fern Farms deal.
PGG Wrightson half year results:
Revenue: $737.7m, up 32pc
Profit: -32.8m, down 195pc
Dividend: 5 cents per share
KEY POINTS:
Big rural services company PGG Wrightson has today posted a loss of $32.8 million for the six months to December, down from the $34.6 million recorded in the same period last year.
Profits at the company have been hit by a series of one-off costs.
Itsearnings per share dropped to a negative 11c in NZ dollar terms, down from 12c benefit in the same six months of 2007. Its shares were trading today at 77c.
The listed company reported operating revenue of $737.722 million ($559.925m in 2007) and gross profit of $157.346m ($138.93m) both rose, but its profit before interest, slumped to $16.154m ($53.182m). Net interest costs were $16.41m ($9.862m) and its after-tax loss from continuing operations was $32.761m ($33.836m last year).
Wrightson said total recognised expenses for the period were $42.574m, compared with income of $34.992m last year.
It said trading performance had improved, but one-off costs involved with a failed merger with meat processor Silver Fern Farms hit profit.
Chairman Craig Norgate said the company had received bank commitments for its existing $475 million facilities.
He said the first half had a "net operating profit before tax" of $22.1m, an increase of $32 per cent on last year's $16.8m, but the lift had been offset by a range of non-trading items which meant the company reported an "accounting loss" of $32.8m.
