Seeka announces a $0.10 per share dividend

Media Release

Monday 13 December

Seeka announces a $0.10 per share dividend

Seeka Kiwifruit Industries Limited has announced a $0.10 per share dividend to be paid 31 December 2010. The dividend will be paid to all shareholders on the register at 5pm 24 December 2010.

Seeka Chief Executive Michael Franks says the dividend payment completes a satisfying year for Seeka and brings the total dividends distributed to shareholders of 20 cents per share fully imputed. While the outbreak of PSA remains a concern there is a cautious confidence that the Industry will be able to manage its impact through the aggressive management practice put in place.

The dividend announcement comes after a strong six-monthly report dated 30 September 2010, which shows the company having significantly increased revenue and earnings.

Seeka's total revenue for the six months increased to $110.4m, up 15.6% on the previous year. Earnings before non-recurring items, interest, tax, depreciation and amortisation (EBITDA) of $24.5m compares to $17.7m for the same period, up 38.5%. Net profit before tax, non-recurring items and impairments rose by 35.9% to $20.0m.

Seeka is about to change its annual balance date from 31 March to 31 December. This will better reflect Seeka’s business cycle, simplify accounting and improve the meaningfulness of financial statements. Accordingly, the current financial year will be for the nine months ending on 31 December 2010, with the new financial year commencing 1 January 2011.

At the annual shareholders meeting in August, Seeka predicted earnings before non-recurring items and tax for the 9 months to 31 December 2010 to be between $11.5m and $12.5m, compared to $9.8m for the same period in 2009. The company recently confirmed the forecast guidance subject to any unknown impact that PSA may have on the valuation of its biological assets.

ENDS

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