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


LIC full year result

LIC full year result

Farmer-owned co-operative, Livestock Improvement Corporation (NZX: LIC), has announced its result for the year ending 31 May 2015.

The result is summarised below, with more information attached in the Chairman’s letter to LIC shareholders.

Revenue: LIC revenue from ordinary activities was $228 million. Adding $4 million of other income from grants gives total revenue of $232 million. This is 10% ahead of the total revenue of $211 million achieved in 2013-2014. All profit is returned to LIC’s 10,500 New Zealand dairy farmer shareholders as products, research and development or dividends.

NPAT: LIC net profit after tax was $13.7 million, down $4.4 million from the previous year. This decrease largely reflects the continued spend on core technology and infrastructure to ensure the co-op’s technology is up-to-date, supported and able to provide a stable platform for delivering new products to farmers. Net profit after tax for LIC includes the annual revaluation to fair value of the biological elite bull team which, this year, was an increase net of tax of $2.7 million compared to a decrease of $0.57 million last year.

The fluctuations on fair value of the elite bull team are excluded for the purposes of dividend for LIC and are not considered as a key indicator of trading performance. For this reason, LIC also reports Underlying Net Earnings (NPAT excluding the increase or decrease on fair value of elite biological assets and the related tax effect) which decreased from $18.6 million to $11 million this year. This flows through to a dividend to farmer shareholders of $6.58 million compared to $11.168 million last year.

Strength of balance sheet: LIC continues to operate a strong balance sheet with total assets including cash, software, land and buildings and bull teams of $302 million, an increase of $17.7 million over the previous year with a strong equity ratio of 73%. Bank loans were $10 million at year end.

Cash flow: Cash flows from operations were $34.8 million, compared to $37.0 million in 2013-2014, with higher sales and strong cashflows on-farm from the high milk payout. Purchases of both tangible and intangible assets increased from $34.6 million to $45.7 million as the co-operative increased its investment in development of innovative products for farmers and continued investment in technology and building upgrades.

Dividend: LIC will pay a dividend of $6.58 million, representing 60% of underlying earnings, to its Co-operative and Investment Shareholders. In 2014 the dividend paid was at 60% being $11.17 million. The 2014-2015 dividend translates to 9.15 cents per Co-operative Control Share and 20.26 cents per Investment Share and represents a gross yield of 6.25% on Investment Shares compared to 6.94% last year. The fully imputed dividend payments will be made to shareholders on 21 August 2015.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Reserve Bank: Further Easing In Monetary Policy Delivered

Tēnā koutou katoa, welcome all. The Monetary Policy Committee agreed to expand the Large Scale Asset Purchase (LSAP) programme up to $100 billion so as to further lower retail interest rates in order to achieve its remit. The eligible assets remain ... More>>

Retail: Post-Lockdown Retail Card Spending Picks Up

The rise in retail card spending was boosted by sales of furniture, hardware, and appliances, Stats NZ said today. “For a third consecutive month, card spending on the long-lasting goods (durables) remained at higher levels than last year, after ... More>>

Contact: Business Drops, New Generation On Hold

New Zealand’s second-largest energy company Contact Energy (‘Contact’) released its full year financial results for the 12 months to 30 June 2020 (‘FY20’) this morning. More>>

Mining: OceanaGold Announces Receipt Of WKP Mining Permit

MELBOURNE, Australia, Aug. 6, 2020 /CNW/ - OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the 'Company') is pleased to announce it has received the mining permit for Wharekirauponga ('WKP') on the North Island of New Zealand. ... More>>


Economy: COVID-19 Lockdown Has Widespread Effects On Labour Market

In the June 2020 quarter, the seasonally adjusted unemployment rate fell to 4.0 percent, down from 4.2 percent last quarter, while underutilisation rose, Stats NZ said today. More>>


NZ Post: New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3

New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently. Online spend peaked ... More>>


Antarctica NZ: Ice-Olation

Antarctica New Zealand is gearing up for a much reduced season on the ice this year and a very different deployment to normal! Before they head to one of the remotest places on the planet, all personnel flying south with the New Zealand programme will ... More>>


QV Valuations: July House Price Index Illustrates Market Resilience

According to the July 2020 QV House Price Index (HPI) results out today , property values recorded a marginal increase, up 0.2% over the month. This is somewhat of a turnaround from June, after the national index edged 0.2% lower. More>>


Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>


FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>