PGW
12/08/2014 08:33
FLLYR
REL: 0833 HRS PGG Wrightson Limited
FLLYR: PGW: PGG Wrightson delivers strongest result for several years
PGG Wrightson delivers strongest result for several years
PGG Wrightson Ltd* (PGW) today announced its strongest operating result for
several years with a 28% uplift in Operating EBITDA.
For the period ending 30 June 2014, PGW achieved operating earnings before
interest, tax, depreciation and amortisation (Operating EBITDA)** of $58.7
million, up from $45.8 million for the prior financial year. Revenue was up
eight per cent and after factoring in last year's goodwill impairment, the
$42.3 million net profit after tax was $27.6 million ahead of the 2013
result. Cash from operating activities grew by $15.5 million to $54.8
million.
The company will pay a fully imputed dividend of 3.5 cents per share which
will be paid to shareholders registered as at the record date of 26 August
2014. The dividend will be paid on 3 October 2014.
This distribution is inclusive of a final dividend of 2.5 cents per share and
an additional special dividend component of 1 cent per share to recognise the
strong cash flows in the past year. This will bring the total dividends paid
for the full year to 5.5 cents per share.
"PGW continues to represent a leading option for investors looking for broad
based exposure to New Zealand agriculture, and the commercialisation of
agri-technologies to our growing international markets. This year's strong
financial result demonstrates the overall strength of the company.
"We have developed strategies to grow our business based around our clients'
business needs. This financial result suggests those plans are on track and
are delivering real benefits for our clients, staff and shareholders.
"New Zealand agriculture has performed strongly over the last year. Our
size, products and geographic reach, technical expertise, and dedicated staff
allowed PGW to capitalise on that" said Mark Dewdney, who commenced as Chief
Executive Officer on 1 July 2013.
Mark Dewdney said the company has recently undertaken a significant exercise
to refresh the PGW Group strategic plan. "This plan is now being implemented
at both the PGW Group and individual business unit level. Our business unit
strategies provide clear direction on how we see the markets in which we
operate, and how we are responding to capitalise on the opportunities
available to PGW. The strategic initiatives have been embraced positively by
the business. The company will outline the key elements of the plan to
shareholders and the market in coming months."
"We see an exciting phase where PGW can look to increase investment in its
people, product, service and technology offering. We are challenging every
business unit to grow market share. The outlook for our core sheep, beef,
arable, horticulture and viticulture markets is positive and will continue to
be a major focus for the company, and in addition we are going to put more
emphasis on the dairy, water and agronomy sectors in New Zealand. We also see
potential to grow strongly in South America and our other international
markets."
PGW's balance sheet remains strong and this enabled the company to make
strategic investments in Water Dynamics and AG Property Holdings during the
year.
PGW Chairman, Alan Lai, commented, "We continue to see significant
improvements across all aspects of the company. The management team has been
given a challenge to grow the business. Mark has an engaged and passionate
group of people working with him. The Board is aligned to the strategy and
believes that PGW can capitalise on its unique position in the agriculture
sector in New Zealand and other markets in which it operates
internationally."
Mr Lai also noted that the Board was pleased to announce Trevor Burt's
appointment as Deputy Chairman. "Trevor has been a director of PGW since
December 2012 and is well placed to support the company from his Christchurch
base where PGW's head office is also located. The Board and I welcome the
additional cover Trevor will be able to provide the business as Deputy
Chairman."
In concluding, Mark Dewdney said that "PGW was confident that it could
deliver further increases on this year's Operating EBITDA result through the
delivery of its strategy. However, given the volatility in the forecast
dairy price at the current time, and the need to assess the likely impact for
PGW's clients and the sector, it was the company's intention to provide a
forecast for the current fiscal year at the time of the Annual Shareholders
Meeting in October."
Further information:
Mark Dewdney
Ph 027 248 3151
End CA:00253731 For:PGW Type:FLLYR Time:2014-08-12 08:33:09
