LIC
23/07/2015 10:10
FLLYR
PRICE SENSITIVE
REL: 1010 HRS Livestock Improvement Corporation Limited (NS)
FLLYR: LIC: LIC full year result
LIC full year result
Farmer-owned co-operative, Livestock Improvement Corporation (NZX: LIC), has
announced its result for the year ending 31 May 2015.
The result is summarised below, with more information attached including the
Chairman's letter to LIC shareholders.
Revenue: LIC revenue from ordinary activities was $228 million. Adding $4
million of other income from grants gives total revenue of $232 million. This
is 10% ahead of the total revenue of $211 million achieved in 2013-2014. All
profit is returned to LIC's 10,500 New Zealand dairy farmer shareholders as
products, research and development or dividends.
NPAT: LIC net profit after tax was $13.7 million, down $4.4 million from the
previous year. This decrease largely reflects the continued spend on core
technology and infrastructure to ensure the co-op's technology is up-to-date,
supported and able to provide a stable platform for delivering new products
to farmers. Net profit after tax for LIC includes the annual revaluation to
fair value of the biological elite bull team which, this year, was an
increase net of tax of $2.7 million compared to a decrease of $0.57 million
last year.
The fluctuations on fair value of the elite bull team are excluded for the
purposes of dividend for LIC and are not considered as a key indicator of
trading performance. For this reason, LIC also reports Underlying Net
Earnings (NPAT excluding the increase or decrease on fair value of elite
biological assets and the related tax effect) which decreased from $18.6
million to $11 million this year. This flows through to a dividend to farmer
shareholders of $6.58 million compared to $11.168 million last year.
Strength of balance sheet: LIC continues to operate a strong balance sheet
with total assets including cash, software, land and buildings and bull teams
of $302 million, an increase of $17.7 million over the previous year with a
strong equity ratio of 73%. Bank loans were $10 million at year end.
Cash flow: Cash flows from operations were $34.8 million, compared to $37.0
million in 2013-2014, with higher sales and strong cashflows on-farm from the
high milk payout. Purchases of both tangible and intangible assets increased
from $34.6 million to $45.7 million as the co-operative increased its
investment in development of innovative products for farmers and continued
investment in technology and building upgrades.
Dividend: LIC will pay a dividend of $6.58 million, representing 60% of
underlying earnings, to its Co-operative and Investment Shareholders. In 2014
the dividend paid was at 60% being $11.17 million. The 2014-2015 dividend
translates to 9.15 cents per Co-operative Control Share and 20.26 cents per
Investment Share and represents a gross yield of 6.25% on Investment Shares
compared to 6.94% last year. The fully imputed dividend payments will be made
to shareholders on 21 August 2015.
ENDS
Media contact: Ashleigh Sattler, Senior Communications Advisor, 027 617 1942
[email protected].
Note: In accordance with the Companies Act, LIC's Annual Report and financial
statements for 2014-2015 are available at www.lic.co.nz/publications.
End CA:00267327 For:LIC Type:FLLYR Time:2015-07-23 10:10:06
(20min delay)