Reconditioned Wrightson lifts off

Friday 11th October 2002

Wrightson's excellent profit result seems to have caught the market on the hop and the rocketing share price shows what happens when you do what you said you'd do.

The June-year earnings before interest and tax jumped 53% to $31.7 million and the net profit nearly doubled to $21.2 million.

Under chief executive Allan Freeth the troubled group has shaken off its appalling 1999 year when its shares fell to 30c.

Wrightson has embraced EVA (economic value added) as a performance benchmark and is moving from a commodities price-driven model to one with sustainable earnings streams throughout the rural business cycle.

Costs have been cut and an electronic logistics management system introduced.

The "solutions strategy" aims to differentiate the company from competitors by offering tailor-made productivity-boosting packages.

It has even turned around the Australian business, which this year contributed a $3.3 million profit.

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