Williams and Kettle doubles net profit

By Phil Boeyen, ShareChat Business News Editor

Monday 25th September 2000

Rural services company Williams and Kettle has reinforced the positive news from the farm gate by doubling its full year net profit to over $4 million.

For the year to the end of July W&K's net profit was $4.176 million compared with last year's $2.1 million. An eight cent final dividend has been declared, bringing the full year's dividend to 15 cents.

W&K chairman, Jim Zohrab, says the positive rural environment, gains in market share and the company's investment strategies over the past two years had contributed significantly to the improved result.

"Major initiatives completed during the year included merging Fruitfed Supplies with W&K's merchandising operations, restructuring the NZ Rural Property Trust, and we have now sold 5 of the 6 farm properties owned directly by the company at satisfactory prices."

Mr Zohrab says the company's traditional farm servicing operations, of livestock, wool, merchandise and rural finance had all performed strongly throughout the year, helped by improved farm returns, and a favourable climatic season.

W&K says its market share also increased significantly as it continued to focus on adding value to its clients through its established core businesses. Sales for the year increased to $154 million compared with $87 million last year.

The company's directors says they are pleased with the outlook for the company, with trading continuing strongly into the current year.

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