Sharechat Logo

Sanford holds dividend as earnings soar

NZPA

Thursday 26th May 2011

Text too small?

Fishing company Sanford has maintained its interim dividend at nine cents a share after reporting sharply higher earnings from a business that includes the Pacifica Seafoods mussels business purchased last November.

Earnings before interest, tax, depreciation and amortisation rose to $26 million in the six months to March 31, from $10 million in the same period last year. The after-tax profit of $13.1m compared to $5.3m last year.

Revenue was up 23 percent to $228m, and excluding Pacifica the rise was 17 percent.

The company is paying a nine cent a share interim dividend on June 15, unchanged from last year.

"Although the increase in profitability in the last six months is pleasing the board is focused on reducing the debt level following the Pacifica Seafoods purchase on November 30, 2010," the company said.

While releasing the bumper profit, the company took time out to pay tribute to chairman Bruce Cole who died on May 11 after a short illness. Jeff Todd was elected as chairman today and the company said a new director appointment will be made in the near future.

"Prices over the period have improved for most species as seafood follows the worldwide increase in commodity prices," the company said.

The company is forecasting a further improvement in profitability from higher prices despite the impact of high fuel prices and the high New Zealand dollar.

"Good progress has been achieved in moving to a level of profitability that can be justified at an exchange rate between 70 and 75 cents to the US dollar. We must though, continue our focus on cost control, production efficiency and maximising market returns," the company said.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Sanford names Volker Kuntzsch as CEO, replacing Barratt
Sanford faces three charges relating to illegal dumping of oil at sea
Sanford annual profit to miss forecast on lower skipjack tuna, toothfish and mussel harvest
Sanford annual profit falls 6.7% on mussel farm restructuring
Former Sanford engineer faces up to 26 years jail for obstruction
Sanford's Barratt 'disappointed' at US guilty verdict
US withdraws US24M 'proceeds of crime' claim against Sanford
US Justice Dept set to release Sanford fishing vessel in Pago Pago
Sanford full-year profit falls 11% as kiwi dollar's strength erodes returns in second half
Sanford annual profit falls as much as 12% on strong kiwi, lower tuna catch