Profit jump for Allied Farmers

Chairman, Brian Train, says the result is $610,000 above last year's interim profit figure. Operating profit before interest and tax of was $3.72 million compared to $2.385 million for the same period the previous year.

Revenue for the period fell 3% to $63 million compared with the year before.

Mr Train says the interim result represents a significant improvement on the corresponding period in 2000 with improved returns and confidence continuing in the agricultural sector.

"The three core divisions of Merchandise Livestock and Real Estate have shown material uplifts in returns while costs have been contained.

"Farmers Wools Ltd contribution was in line for the same period last year. Allied Farmers Finance Limited contribution was satisfactory, with the benefits of establishing an office in Auckland expected to be reflected at year end. Operating cash flows were again positive reflecting the increased confidence in the rural sector.

Mr Train says the purchase of Manawatu Livestock Ltd, which commenced business as Manawatu Farmers on the 2nd of April, will boost year-end earnings and he expects the second half result to exceed the previous year's profit.

The company is paying an interim dividend of 7 cents per share full imputed, representing 50% of the tax paid profit.

"This dividend of 7 cents per share has been made payable including the bonus issue, which effectively doubles the dividend paid of 5.5 cents per share last year to 10.5 cents per share before the bonus issue," says Mr Train.

Allied Farmers announced earlier this year that it intends listing on the main board of the NZSE in May.

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