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


Allied Farmers shares jump 16% on earnings upgrade

Wednesday 27 July 2016 12:17 PM

Allied Farmers shares jump 16% on earnings upgrade

By Paul McBeth

July 27 (BusinessDesk) - Allied Farmers shares jumped 16 percent after the rural services firm gave a rosier view on annual earnings due to a better than expected performance from its livestock division.

The Hawera-based company said pre-tax profit was between $1.4 million and $1.6 million in the year ended June 30, up from $1.11 million a year earlier. The final result will be released on by Aug. 29. The shares climbed 0.7 of a cent to 5 cents, valuing the company at $8.3 million.

"A large portion of NZ Farmers Livestock's income is budgeted to be received in May each year, due to the timing of dairy herd sales," chairman Garry Bluett said. "The performance of the livestock division has exceeded expectations and, as a consequence, the Allied Farmers result for the six months ended 30 June 2016 is expected to be in the range of $0.6-$0.7 million, and this is expected to materially and positively affect the full year result."

Allied Farmers has been focusing on its livestock division, having largely wound down the residual assets from its acquisition of the Hanover and United Finance loan books in 2009. The dairy downturn weighed on the company's earnings last year as an uncertain farmgate payout caused some farmers to refrain from buying livestock.

The company today said it has paid the second tranche of a scheduled acquisition of Hawke's Bay-based Redshaw Livestock, taking its stake to 34 percent. A final installment will be made next July, which will give Allied Farmers' NZ Farmers Livestock unit a 52 percent share of the business.

The NZ Farmers Livestock unit has also set up a new subsidiary to provide livestock financing and is in the process of finalising a funding facility for the business.

"This business is being formed to target focused livestock financing and will enable NZ Farmers Livestock to conduct and bring in-house some of the financing operations that it has previously outsourced, and is expected to be a positive contributor in the 2016/2017 year," Allied Farmers said.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>


Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>