Sharechat Logo

Wrightson investors keep the faith despite profit fall

Friday 29th August 2003

Text too small?
A weaker profit has done little to dent the confidence in rural services company Wrightson as investors continue to chase the stock for its high yield and good prospects.

The shares, which climbed to a high of $1.45 following the result, have held firm despite a 13% fall in the company's full-year profit last week.

Whether the good run continues could depend on the overall performance of the rural sector, although the company has shown it can perform well enough even when conditions are not in its favour.

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

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

The company said reduced livestock prices, a slowdown in farmer spending and bad weather affected the latest result.

Similar conditions are expected in 2003/04 with farm prices moderating further.

However, a strong balance sheet means there is capacity for new investment, most likely in seeds, finance and agri-feeds, which the company has targeted as earnings growth areas.

The company said it was well positioned to maintain its high dividend payout ratio of 11.5 cents at 84% of net profit.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

Fonterra farmers urge MPs to unshackle cooperative
NZ dollar benefits as EU likely to grant Brexit extension
24th October 2019 Morning Report
OPINION: All the questions the convention centre fire asks
MARKET CLOSE: NZ stocks drop as investors dump power companies on smelter scare
NZ dollar eases after another Brexit failure
SkyCity, Fletcher won't name their insurers
NZ stocks smacked by smelter review, SkyCity fire
No govt cash for Tiwai Point - Woods
Strong dairy exports narrow Sept trade deficit

IRG See IRG research reports