Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

A ‘defining year’ for Silver Fern Farms

23 October 2009

A ‘defining year’ for Silver Fern Farms

Silver Fern Farms has posted financial results that were ‘broadly in line with expectations’, and reflected the global economic environment and the highly volatile NZ dollar exchange rate.

Eoin Garden, Silver Fern Farms’ Chairman says shareholders should be pleased the company comes out of the past year in a vastly stronger financial position than recent years. “This is no mean achievement given the current economic environment which has had severe impacts on many businesses and sectors.”

Net profits for the year ended August 2009 were $43.6m, from total income of $2,015m. Removing the gain from the settlement with PGG Wrightson of $37m and other one off items saw operating profit at $5.1m.

In line with the company’s continued focus on balance sheet strength, total debt was reduced by $57.7m to $184.5m during the year, including the SFF020 Bonds repayment of $50m during March 2009.

In view of the economic environment and the company’s recent focus on recapitalisation of the business, the directors have resolved that no shareholder distributions will be paid for the year ended August 2009.

Mr Garden says 2009 had been a ‘defining year’ during for Silver Fern Farms and its stakeholders, during which the group had made substantial and measurable progress towards its transformation from a traditional, sales oriented meat processor to a market led food company.

Following on from last financial year’s successful Rightsize project, under which the group cut back debt dramatically, the group had also:

-       Successfully launched its new brand both locally and internationally

-       Established and enhanced its Backbone® contract procurement programme for suppliers

-       Made substantial investments in innovation, technology and R&D projects including X-ray carcase analysis, robotics and RFID technology

-       Formed joint ventures into its non-core businesses, including rendering through Farm Brands Limited and into transport through Livestock Logistics

-       Integrated the logistics and marketing side of Rissington, building capabilities in integrated supply chains.

 

Capital Restructuring

On 30 July 2009 Silver Fern Farms’ shareholders voted in favour of constitutional changes, effectively endorsing the need to align the company’s capital and governance structure.

Mr Garden says approval of that new Constitution means that the company now had the ability to introduce a modern capital structure which both protected the company and offered increased benefits over past structures including a new market rebate system and an enhanced governance structure focused on skills based governance.

Subsequently, a total of 5,787 shareholders, holding 42.9m shares and representing 75% of the total 57.5m shares eligible for exchange, had participated in the offer which closed on 9 October 2009. Shareholders elected to subscribe for a further 22.2m shares under the associated rights offer. “The results reflect a high level of positive shareholder engagement with the new structure of their company,” says Mr Garden.

The ordinary shares will list on the Unlisted trading platform on 27 October.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: Prices For Transport And Housing Rise In March 2021 Quarter

Higher prices for transport and housing led to a 0.8 percent lift in the consumers price index in the March 2021 quarter, Stats NZ said today. Prices for getting around rose in the March quarter. Transport prices rose 3.9 percent, the biggest quarterly ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>