By NZPA
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Thursday 20th March 2003 |
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The company, which posted a $6.5 million loss last year, is expecting a full year profit in excess of $22 million before tax, as flagged in January.
Chief executive Graeme Milne said in a statement that management remained focused on achieving this result despite the distraction of being a takeover target.
"It is critical that we return the company to profitability irrespective of whom the ultimate shareholders may be," Mr Milne said.
Richmond has been the subject of a long and hostile takeover bid by South Island counterpart PPCS. Today, Richmond's shares closed 2 cents above PPCS' offer of $3.11.
Mr Milne said profitability in January and February had been ahead of target, and processed stock numbers -- which were low last year -- were currently 15 to 20 percent ahead of the same period last year due to drought.
However, stock numbers for the full year were forecast to increase only by 7 percent.
"The first half result (October-March) is likely to be a large proportion of the full year forecast because there will be lower volumes of livestock to process in the second half, hence our full year forecast is unchanged at this stage," Mr Milne said.
Risks included continued dry conditions, currency fluctuations and increased market risks resulting from the situation in Iraq.
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