Briefly

Friday 17th August 2001

Strong rural sector lifts Wrightson

Rural services group Wrightson was a major beneficiary of the strong agricultural economy, posting a 41% higher $10.7 million June-year after-tax profit.

Chairman John Palmer said the company - which was struggling two years ago - had also benefited from a programme of strengthening client relationships, increasing market share and lifting margins.

The profit would have been higher still if the company hadn't booked several one-offs. The loss-making Australian potato business was sold, resulting in a $2.9 million write-off, and a warranty claims dispute with strategic alliance partner Rabobank was settled at a cost of $1.9 million.

Trading losses and goodwill write-off in the troublesome business in Uruguay, where drought and an outbreak of foot and mouth disease hit the rural sector, took $3.5 million.

The group also had an abnormally high tax expense - $10.3 million - because it couldn't offset the Australian or Uruguayan losses or the Rabobank settlement.

Earnings before interest and tax were up 58% to $13.1 million.

Milksolids payout pads Dairy Brands

Dairy Brands' May-year profit jumped from $1.7 million to $6.3 million as the company sells its assets and pays back shareholders.

The operating surplus rose from $119,000 to $3 million, reflecting a record $5 a kilogram milksolid payout and directors said they were considering a share buyback.

Metlifecare fills its homes

Aged care services operator Metlifecare broke a profit drought with a $3 million June first-half profit, a turnaround from a $1.3 million loss a year ago.

Last year's loss was due to a $1.6 million abnormal item while this year's profit was boosted by a $1 million extraordinary gain.

Under a new chief executive, former nurse Gavin Aleksich, the company is pursuing a three-year business improvement plan. Chairman Peter Fitzsimmons said performance had improved across all operating areas.Strong referrals to the nursing homes and hospitals had boosted occupancy levels while sales and resales - up 10 to 128 - were also strong.

Operating revenues grew 13% to $42.1 million and net operating cash flow rose 18.7% to $10.8 million.

Profit up but Tasman's farms all sold

Corporate dairy farmer Tasman Agriculture posted a record $59.1 million May-year profit, of which $34.6 million came from selling farms.

The company also benefited from strong milksolid payouts as operating earnings before interest and tax climbed by 55% to $26.6 million.

The sale of nine dairy units led to a 3.5% decline in milksolids production, to 17.5 million kilograms.

Tasman Agriculture began a "strategic selldown" of its dairy farms in September last year. Of the eight remaining units four have been sold unconditionally for $17.7 million, 41% above book value, for settlement this month.

The other four have been sold for $12.8 million, 38% above book value, for settlement in June next year.

Bumper gain for Baycorp

On the eve of its $1.9 billion merger with Australia's Data Advantage, credit services company Baycorp Holdings posted a 24% higher $20.7 million June-year bottom-line profit, the seventh consecutive record gain.

A $13.7 million gain on revaluing its 9.8 million Data shares, less $6.9 million of "costs associated with overseas investments," boosted the group net profit to $26.9 million.

Five of the group's six divisions recorded higher revenue, the exception being the "other business" division, where turnover fell by 44% to $1.47 million. The strongest performer was lending solutions, the loan management services division, where revenue more than doubled to $2.9 million.

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