Ann: FLLYR: SEK: Seeka announces its 31 December 2014 result

• Release Date: 27/02/15 12:52
• Summary: FLLYR: SEK: Seeka announces its 31 December 2014 result
• Price Sensitive: No
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					SEK
27/02/2015 12:52
FLLYR
PRICE SENSITIVE
REL: 1252 HRS Seeka Kiwifruit Industries Limited

FLLYR: SEK: Seeka announces its 31 December 2014 result

Seeka Kiwifruit Industries
12 Months to 31 December 2014 [Audited]
The directors and management are pleased to present Seeka's financial results
for the year ended 31 December 2014.
The overall results are better than guidance given to shareholders at the
October 2014 stakeholder meeting, specifically:
- Earnings before interest, tax, depreciation, revaluations and impairments
(EBITDA) total $11.29m (above the guidance range of $10m to $10.5m);
- Profit after tax totals $3.17m (above the guidance range of $2.6m to $3m).

[This announcement is to be read in conjunction with the attached release]

Financial Highlights
- Operating revenue totalled $115.67m, up 18.8% from $ 97.37m in the pcp.
- EBITDA totalled $11.29m, up 19.5% from $9.45m in the pcp.
- Profit before tax was $4.26m, up 42.0% from $3.00m in the pcp.  This
includes a $1.4m gain from the sale of OPAC and a $1.85m non-cash cost
associated with the grower share scheme.
- Interest cost totalled $1.30m, compared with $1.14m in the pcp (due to
slightly higher interest rates and debt levels).
- Net profit after tax totalled $3.17m, up 38.0% from $2.30m in the pcp.
- Cashflow from operations totalled $8.53m, compared with $8.83m in the pcp.
The company re-invested $5.64m in property plant and equipment and
re-invested $925,000 in the redevelopment of long-term orchards. The company
sold its investment in OPAC for $3.13m and purchased 100% of the Glassfields
business for $5.38m.
o Dividends distributed to shareholders during the year totalled $2.27m,
compared to $1.73m in the pcp. The dividend payment in 2012 was zero.

Dividend Announcement
The directors have declared a fully-imputed dividend of $0.08 per share. The
dividend will apply to those shareholders on the register at 5pm, 20 March
2015 and be distributed on 27 March 2015. The dividend reinvestment plan will
apply to the dividend.

Overview
Overall revenue of $115.67m, is up 18.8% from $97.37m in the pcp. Note that
Seeka has only included its agency commission as revenue in the circumstance
where it sells produce. Turnover, including produce sold on behalf of
suppliers, totals $148.6m (up 35.8% from $109.4m in the pcp; this significant
increase reflects the effect of the Glassfields purchase on retail services
activities).
Profitability is being rebuilt after Psa-V's devastation of the kiwifruit
industry. After tax profit of $3.17m is up 37.8% from $2.30m in the previous
corresponding period (pcp). This result is in line with expectations. A gain
of nearly $1.4m stems from the sale of its shares in Opotiki Packing and
Coolstore Limited (OPAC), while non-cash costs of $1.85m relate to the first
year of the new grower share scheme.
Seeka has achieved earnings of $0.22 per share for the year, up from $0.16
the previous year. Seeka issued 1.08 million shares in 2014 and, at the
year's end, each had a net tangible asset backing of $4.07 and a market price
of $3.23.
Debt levels remain well within the Board's target range. At 31 December 2014,
net bank debt (term loans less cash deposits) totalled $17.24m, compared with
14.67m in the pcp. At 31 December 2014, Seeka had invested $11.59m into next
year's crop (effectively inventory) and typically this is funded from
short-term debt. Removing this short-term debt reduces core debt to $5.65m,
compared to $4.7m in the pcp. This is considered a low level of debt in the
context of the company's long-term assets of $79.82m.
Seeka continues to invest in plant and equipment in anticipation of greater
crop volumes. Total cashflow from operations totals $8.53m for the year.
Seeka has re-invested $5.64m into new plant and equipment (compared to $1.62m
in the pcp) and re-invested $925,000 into long-term lease redevelopment
(compared to $1.24m in the pcp).
The company continues to focus on building shareholder dividends.
Fully-imputed dividends of $0.15 per share have been distributed in 2014
(compared to $0.12 in the pcp), totalling $2.27m (compared to $1.73m in the
pcp). Two years ago the dividend distribution was nil.

Reporting period for year ended 31 December 2014.
FINANCIAL SUMMARY
Revenue from ordinary activities ($000)      $ 115,672 up  18.8%
Profit from ordinary activities before tax attributable to security holders
($000)     $ 4,263 up 42.0%
Profit from ordinary activities after tax attributable to security holders
($000)     $ 3,168  up 38.0%
Net profit attributable to security holders ($000) $ 3,168 up 38.0%
EBITDA before revaluations and impairments ($000)      $ 11,288 up 19.5%

EARNINGS PER SHARE
Basic earnings per share    $ 0.22    [2013 = $ 0.16]
Diluted earnings per share     $ 0.22  [2013 = $ 0.16]
Asset backing per share    $ 4.07     [2013 = $ 4.02]

FOR MORE INFORMATION CONTACT
Michael Franks
Chief Executive
021 356 516
Stuart McKinstry
Chief Financial Officer
021 221 5583
End CA:00261271 For:SEK    Type:FLLYR      Time:2015-02-27 12:52:05