By Phil Boeyen, ShareChat Business News Editor
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Friday 3rd August 2001 |
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For the year ended June the company has reported a $7.6 million profit, up from $4.6 million last year, with sales surging 25% to $108 million.
The company says all its divisions - rural real estate, farm supplies, financial services, livestock and wool - returned record results.
"We believe that we have the correct strategies for a rural servicing business and that these strategies are being properly implemented by our staff," the company says.
"Appropriate strategies, and execution of those strategies, together with buoyant returns for pastoral farmers has led to the record results."
Shareholders will not be missing out on the financial bonus. The final year dividend has been boosted from 5 cents per share last year to 7 cents per share, fully imputed and payable next month.
Reid Farmers says the annual profit result is the fourth consecutive increase in reported profit and represents an after tax return on average shareholder equity of 19.4%.
The latest result should also put a smile on the face of Christchurch-based Pyne Gould Corporation, which will hold almost 70% of Reid Farmers following the recent agreement of a business merger with its own rural services arm, Pyne Gould Guinness.
Under the agreement Reid Farmers will issue 44 million shares to Pyne Gould in consideration for the acquisition of PGG, although the shares will not qualify for this year's final dividend payout.
A shareholder meeting to approve the merger is planned for later this month.
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