Ann: FLLYR: PGW: PGW Annual Results Full Year end

• Release Date: 13/08/13 10:23
• Summary: FLLYR: PGW: PGW Annual Results Full Year ending June 2013
• Price Sensitive: No
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PGW
13/08/2013 08:23
FLLYR

REL: 0823 HRS PGG Wrightson Limited

FLLYR: PGW: PGW Annual Results Full Year ending June 2013

PGW annual result impacted by trading environment and goodwill write down

PGG Wrightson Ltd* achieved operating earnings before interest, tax and
depreciation (Operating EBITDA)** of $45.8 million for the year ended 30 June
2013.  While down on the previous year, the result was within the Company's
profit guidance range announced in May and reflects the challenging on-farm
conditions during the year.

After a detailed review by the Board of directors, the Company has written
off goodwill of $321.1 million.  This goodwill largely arose as an accounting
entry from the 2005 merger of PGG and Wrightson.  A number of factors,
including the Company's share price, slower than expected recovery and a
range of external variables, led the Board to conclude that a write-down of
historic goodwill was appropriate.

As a consequence of the goodwill write-down the Company will post a loss of
$306.5 million for the year. Ignoring the goodwill write-down, a profit of
$14.6 million would have been posted compared to last year's profit of $24.5
million.  The goodwill write-down has no impact on the Company's operations
or cash flow.  Operating cash flow was $39.3 million.

A dividend of 2.2 cents per share was paid in March and a further fully
imputed dividend of 1 cent per share will be paid to shareholders registered
at the record date of 30 August 2013. The dividend will be paid on 13
September 2013.

Chief executive, Mark Dewdney noted that the operating result was a solid
achievement.

"Drought in the North Island and in parts of Australia, as well as reduced
prices for key agricultural commodities made late-autumn trading conditions
challenging and our business units experienced varying fortunes in the year
to June 2013," he said.

"Despite this our business is in good shape.  Our people, and the strength of
their relationships with customers, are the key to our success.  Customer
satisfaction and staff engagement measures show that we are making excellent
progress in these critical areas.

PGG Wrightson's retail, wool and irrigation businesses performed strongly
with improved market share across a number of key categories.  Livestock,
real estate, seeds and grain faced challenges.

"Year on year trading figures in many of our rural supplies stores were up,
and our irrigation business showed excellent growth, particularly around some
of the large irrigation schemes coming on stream in the South Island.  The
full year benefits of reintegrating the wool business back into the broader
group delivered both improved performance and reduced support costs.

"However, the drought and lower market values for lambs took a toll on farm
profitability, and this is reflected in our livestock business.  Timing of
rainfall in dairying regions is a factor in the fortunes of our Australian
seed business, and conditions resulted in poorer than expected sales," he
said.

PGG Wrightson, Chairperson Sir John Anderson said the decision to write-off
goodwill would have no impact on the Company's operations.

"The investment market currently does not attribute value to the goodwill and
writing it down has no effect on the Company's day-to-day business or banking
arrangements and no bearing on our ability to generate cash or on our
dividend policy.

"We expect to see continued improvement in the fundamental performance of the
business through 2013/14 based on stronger agricultural commodity prices and
assuming a return to normal conditions on farm," he said.

Further information:
?Mark Dewdney?
Ph 027 248 3151
End CA:00239559 For:PGW    Type:FLLYR      Time:2013-08-13 08:23:32