By Phil Boeyen, ShareChat Business News Editor
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Monday 13th August 2001 |
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For the 12 months ended May the company has announced a net surplus of $6.32 million, well above last year's $1.69 million.
The underlying operating surplus, before abnormal items and tax, was $3.05 million compared with $119,000 last year. Sales jumped to $10.55 million from $6.86 million previously.
The company says the result reflects a record payout of $5.00 per kilogram of milksolids, up 33%, from the Dairy Company, and an excellent result from management and staff.
DBN says it management and staff maintained farm production at levels slightly ahead of last year in a year when many other farmers in the drought stricken areas in which the company's farms are situated were unable to achieve the previous years levels of production.
Dairy Brands has undertaken a series of farm sales since the start of the year in order to recognise the discount to net tangible asset backing at which its shares were continuing trading.
Of the fourteen farms the company owned at the end of the last financial year three were sold and settled at the beginning of June and another four have been sold since May with settlement due next June.
An agreement to sell the final seven farms became unconditional last week, with settlement due at the end of the month.
"The effect of these post 31/05/2001 farm sales will result in additional shareholders equity of approximately $5,861,000 above that already shown in the 31/05/2001 accounts," the company says.
DBN is mulling a share buyback following settlement of the sale of the final seven farms.
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