Nick Stride
Friday 14th November 2003 |
Text too small? |
Scott was responding to reports institutional shareholders were "in revolt" over the company's failure to meet forecasts accompanying a 2001 share issue. And over the postponement of an NZX listing.
The 2001 information memorandum predicted August 2002-year earnings before interest, tax, depreciation and amortisation of $18.4 millio.
The company made only $11.8 million.
But Scott said the shortfall was down to factors management couldn't control.
"We went back and reconciled the [not yet released] August 2003 accounts to the information memorandum.
"Quite simply, the exchange rate then was 41USc, now it's 62USc.
"No company in this country could accommodate that change and come out in the same shape as it went in."
The New Zealand agricultural environment had also taken a dive.
The rural merchandising arms of companies which sell Tru-Test equipment, such as Wrightson and Pyne Gould Guinness, had this year reported tough conditions.
"In Australia we had the worst drought in 108 years last year. The US economy since September 2001 has stopped and done a U-turn," Mr Scott said.
"It's simplistic and naive to criticise the company's performance without taking all these things into account."
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes