Ann: FLLYR: SEK: Seeka announces its 31 December

• Release Date: 27/02/14 17:49
• Summary: FLLYR: SEK: Seeka announces its 31 December 2013 result
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					SEK
27/02/2014 15:49
FLLYR

REL: 1549 HRS Seeka Kiwifruit Industries Limited

FLLYR: SEK: Seeka announces its 31 December 2013 result

The directors and management are pleased to present Seeka's financial results
for the year ended 31 December 2013.

The results are better than NZX guidance given to shareholders at their 22
October 2013 meeting, specifically:
- Profit before tax, impairments and revaluations totalled $3.33m (guidance
range $1.7m to $2.2m);
- Earnings before interest, tax, depreciation and amortisation totalled
$9.94m (guidance range $8.2m to $8.7m).

Seeka achieved earnings of $0.19 per share for the year, and at the year's
end each share had a net tangible asset
backing of $4.05 and on 31 December a market price of $2.10.

Seeka's after-tax profit of $2.67m is down from $5.88m in the previous
corresponding period (pcp). This is significantly
better than anticipated; the company has successfully absorbed the downturn
in fruit volumes and margins caused by
Psa-V.

Overall revenue of $97.37m is 10% down from $108.29m in the pcp, and 30% down
from $138.8m two years ago. The
lower revenue reflects the drop in volume of Zespri Hort16A gold fruit (less
is being grown and processed). Volumes are
expected to recover from 2015 when the new, disease tolerant Zespri G3
variety comes on-stream.

Seeka's strategy to weather the Psa-V outbreak in recent years included
selling surplus non-core assets, reducing debt,
restructuring operations to reduce costs, and limiting capital expenditure.
Seeka pursued new business areas to improve
earnings. The company withheld dividends while it focused on lowering debt.
Dividend payments have been reinstated
now that net debt levels are well within the Board's target range. Net bank
debt (term loans less cash deposits) at 31
December totalled $14.67m, compared to $17.78m pcp. At 31 December 2013,
Seeka had invested $9.24m in next
year's crop; removing this short-term investment reduces core debt to $5.43m.
This is low relative to the context of the
company's long-term assets of $67.87m.

Seeka reviewed and revamped its strategy in 2013. In October, the company
outlined to shareholders a bold vision to
be "New Zealand's Premier Produce Business". Kiwifruit remains the foundation
and heart of the business, but there is a
realisation that Seeka must diversify to provide additional earnings, growth
and capital appreciation to shareholders. While
the recovery in kiwifruit provides exciting growth prospects, developing
complementary business in the produce sector adds
to the company's prospects for future growth.

The past two years have been a difficult time for Seeka and parties
associated with it. It remains a difficult time for some,
as the industry rebuilds and growers re-graft their orchards with fruit
varieties understood to be more tolerant to the Psa
disease. However, the steps taken by Seeka have strengthened the company and
will position it to re-emerge from difficult
times on an exciting growth path.

Directors and management thank staff, contractors and suppliers for their
service, and we thank growers in particular for their loyal support during
the past year.

DIVIDEND
The directors have declared a fully-imputed dividend of $0.07 per share, to
be paid on 28 March 2014.
This is a $0.01 increase on the 27 September 2013 dividend distribution.
The dividend will be paid to those shareholders on the register at 5pm, 21
March 2014.
The dividend reinvestment plan will apply.

FINANCIAL SUMMARY
Reporting period for year ended 31 December 2013.
The previous reporting period is year ended 31 December 2012.

 Revenue from ordinary activities ($000) $ 97,371 down ( 10.1)%

 Profit from ordinary activities before tax attributable to security holders
($000) $ 3,514 down ( 52.3)%

 Profit from ordinary activities after tax attributable to security holders
($000) $ 2,664 down ( 54.7)%

 Net profit attributable to security holders ($000) $ 2,664 down ( 54.7)%

 EBITDA before revaluations and impairments ($000) $ 9,935 down ( 35.8)%

EARNINGS PER SHARE
Year ended 31-Dec-2013

Basic earnings per share $ 0.19 ( $ 0.41 for prior year)
Diluted earnings per share $ 0.19 ($ 0.41 for prior year)
Asset backing per share $ 4.05 ($ 3.89 for prior year)

NOTES
1. This announcement should be read in conjunction with the attached annual
report. A copy of the full annual report can
be found on Seeka's website www.seeka.co.nz.
2. EBITDA before revaluations and impairments is considered by the board to
be a key measure of performance and a
reflection of cash flow generation.
3. Profit before tax, impairments and revaluations is a measure used when
providing guidance to the market and is reported
against in the commentary.

EBITDA Reconciliation $000s 2013
Net profit before tax $ 3,514
Adjustment for impairment charges
  *  Short-term lease (gain) $( 22)
  *  Investments in associates $615
  *  Revaluation land and buildings (gain) $( 776)
Profit before tax, impairments and revaluations $ 3,331
Adjustment for
  *  Depreciation and amortisation expense $5,392
  *  Amortisation of intangibles $73
  *  Interest $1,139
EBITDA before impairments and revaluations $ 9,935

FOR MORE INFORMATION CONTACT
Michael Franks
Chief Executive
021 356 516

Stuart McKinstry
Chief Financial Officer
021 221 5583
End CA:00247591 For:SEK    Type:FLLYR      Time:2014-02-27 15:49:02