Agriculture services company PGG Wrightson Ltd said business conditions were muted in the first quarter of its current financial year and the high New Zealand dollar continues to be a concern.Chairman Sir John Anderson told shareholders at the annual meet
Agriculture services company PGG Wrightson Ltd said business conditions were muted in the first quarter of its current financial year and the high New Zealand dollar continues to be a concern.
Chairman Sir John Anderson told shareholders at the annual meeting that dividends would only be considered once debt was at a level the board was comfortable with, and at this stage the board was not in a position to consider a dividend for the period ending June 30, 2011.
"Given the current market outlook, the board expects trading performance for the current financial year to be largely in line with the prior reporting period," Sir John said.
He said there was "upside" potential at the net profit after tax level because interest costs were lower.
The company reported earnings before interest, tax, depreciation and amortisation (Ebitda) of $70.5 million and net profit after tax of $23.3 million in the year to June 30, 2010.
This compared to a forecast of $73.2m and $24.1m respectively made in the prospective financial information published when the company recapitalised its business.
"The 2009-2010 year was highlighted by the successful recapitalisation of your business, and the securing of a new cornerstone shareholder in Agria," Sir John said.
China-based Agria currently holds approximately 19 percent of the shares in PGG Wrightson, while Pyne Gould Corp holds approximately 18.3 percent. Rural Portfolio Investments, which was associated with businessman Craig Norgate, sold its holding in May.
Sir John said the company experienced minor operational disruption from the magnitude 7.1 earthquake on September 4, though the recently commissioned distribution centre at Rolleston sustained damage to a high percentage of its storage racking systems.
It took a team of 60 people more than four weeks to extricate more than 1800 tonnes of seed from collapsed pallet racking at the facility, and do repair work on the mixing and coating plants.
