Nufarm says share price a major concern

Chairman Kerry Hoggard says the company has consistently added value over the years and in the last accounting period the value amounted to almost $19 million.

"The board believes that if the company is consistently adding economic value and the market is convinced that it will continue to do so then, the share value will appreciate. It is therefore very disappointing to both the management and the board that this has not proven to be the case and the current share price significantly undervalues the business."

Mr Hoggard told shareholders at today's AGM that there may be a number of reasons for the undervalued share price, including more New Zealand shareholders than expected selling up because they no longer receive imputation credits on dividends.

He says it could also be a question of time for the company to be recognised on the Australian market, and that the market has also been preoccupied with high tech and dotcom stocks.

"Whatever the reason or combination of reasons, the current share price is unsatisfactory and is a major concern for the board."

Mr Hoggard says an increased dividend rate and limited on-market share buyback have been introduced as part of a capital management programme, and management is also conducting further meetings with brokers, analysts, the media and the investing community.

Nufarm's MD Doug Rathbone told shareholders that the company is aiming to achieve forecast growth in full year earnings of about 10%.

He says the first three months of the current year had produced mixed results, with slow sales in the Australian crop protection business being partly offset by strong sales in both the crop and non-crop components of the North American operations.

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