Sanford Ltd's shares rose 6.8 percent in a falling sharemarket today after the fishing company issued a profit upgrade.Sanford said its result for the year ended September 30, to be released on November 24, is likely to be well ahead of analysts' consensu
Sanford Ltd's shares rose 6.8 percent in a falling sharemarket today after the fishing company issued a profit upgrade.
Sanford said its result for the year ended September 30, to be released on November 24, is likely to be well ahead of analysts' consensus forecasts and said its second-half revenue rose 14 percent. Its share price rose 28 cents to $4.40 in afternoon trading.
Net profit after tax is likely to be approximately $23 million before a $1.8m one-off non-cash deferred tax adjustment required by tax changes in the Government's May budget.
There will be a tax-free gain of $3.4m from the allocation of emissions trading units issued on the basis of the company's quota ownership. The two adjustments will lift the reported profit to approximately $25m.
The company said revenue for the six months ended September 30 was up by 14 percent over the same period last year and for the year totalled $420m. Sale volumes and values of hoki, squid and salmon increased over the second six months from the same period last year. Skipjack tuna sales increased in the second six months but were down on the same period last year.
Earnings before interest, tax, depreciation and amortisation rose from $10m for the first six months to approximately $38m for the second six months. Exchange rate gains will be just over $7.5m and interest costs will total $5.8m.
"Steadily improving prices for many species cushioned some effects of the high exchange rate and allowed inventory levels to be slowly reduced. Coupled with good catches of hoki, squid, scampi, toothfish and southern blue whiting, profitability for inshore and deepwater fishing operations improved in the second six months," the company said.
Its aquaculture business also improved as market prices reflected stronger demand for Greenshell mussels and salmon.
