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Profitable Richmond to seek full listing

By Phil Boeyen, ShareChat Business News Editor

Thursday 2nd November 2000

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Secondary-listed meat processor Richmond has reported an $11.7 million after-tax profit and announced plans to apply for a full NZSE listing early next year.

The Hastings-based company's latest profit result compares to a $900,000 loss last year, and was on the back of turnover of $1.13 billion.

Richmond chairman, Bob Croker, says the improved profit performance is the best, in absolute dollar terms, in the company's 70-year history, and follows dramatic changes to its structure, especially in the past three years.

"With the benefits of increased scale, Richmond had an accelerated start to the year in terms of our first-half performance, and held on to those gains during the anticipated more difficult second-half. The company is demonstrating a level of consistency that the board is seeking and shareholders expect."

Mr Croker says Richmond benefited from favourable climatic conditions experienced by its suppliers and the exchange rate that assisted exporters. Beef operations provided the standout performance during the first half, but lamb showed the biggest year-on-year improvements.

The company says it plans to apply for full listing on the NZSE early next year, and the board intends to recommend amendments to the company's constitution at the AGM in December to bring it in line with all current Stock Exchange listing requirements.

"Full listing should provide greater liquidity for Richmond shares, and could be expected to remove the discount applied by the market to share not fully listed," says Mr Croker.

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