PGW
25/02/2014 14:53
HALFYR
REL: 1453 HRS PGG Wrightson Limited
HALFYR: PGW: Strong growth and profitability increases from PGW
Strong growth and profitability increases from PGG Wrightson
PGG Wrightson Ltd* (PGW) has announced a strong half-year performance under
its new Chief Executive.
For the six-months ended 31 December 2013, PGW achieved operating earnings
before interest, tax, depreciation and amortisation (Operating EBITDA)** of
$22.3 million, up from $18.0 million for the corresponding period last year.
Mark Dewdney, who took up the role of PGW Chief Executive on 1 July 2013,
called it a strong result with increases recorded across most areas of the
business.
"PGW is on a steady path to re-claiming its position as a leading option for
investors looking for exposure to the ongoing strength of New Zealand
agriculture.
"This half-year result reflects gains in our underlying performance and
improved conditions on-farm. Staff throughout our many businesses are
working with renewed energy and focus to make the most of our Group's
strengths, he said.
Group revenue was up 8% and net profit after tax increased to $13.4 million,
up from $4.8 million last year. Operating cash flow increased to $10.5
million, up from $1.7 million last year.
PGW's Board declared a fully imputed dividend of 2 cents per share, which
will be paid to shareholders registered at the record date of 12 March 2014.
The dividend will be paid on 2 April 2014.
Mark Dewdney said 'One PGW,' an internal initiative launched in October was
playing an important role in the results being achieved.
"'One PGW' is an in-house programme that sharpens our focus on customers, and
the value that PGW can provide them from our whole range of products and
services. Business units are increasingly working together, rather than
independently, which is historically how we tended to operate. Senior staff
developed the initiative, and now the wider team is making it a success, he
said.
"Results show improvements throughout the Group with almost every business
unit ahead of last year's results, he said.
"Real Estate stands out having delivered an Operating EBITDA of $2 million,
compared with a break-even position last year.
"Our Water business acquired and integrated Water Dynamics and Aquaspec
during the period, and also undertook an unprecedented level of repair work
following September's Canterbury windstorm. Ongoing demand for new irrigation
installations remains strong.
The only major business not to deliver an uplift was Wool, as a consequence
of Sheep farmers destocking following the drought, and continued land use
change to dairy.
PGW's balance sheet remains strong. In October, the sale of shares in
Heartland Bank realised $11.2 million. When the business resumed dividends
last year, our primary focus moved away from debt reduction, to growth.
Banking facilities were refinanced during the period, achieving a lower
overall cost and increased flexibility.
Alan Lai, PGW Chairman, commented, "We are pleased to see significant
improvement across all segments of our core businesses. Our Group is now in a
more solid financial position as a result. The Board looks forward to working
closely with the PGW management team to drive PGW's growth strategy in the
years ahead.
Mark Dewdney said, "we are completing a wider review of our overall business
strategy, which we will share with the market in the next few months.
"At the Annual Shareholder Meeting in October, we forecast Operating EBITDA
for the current financial year to be $52-$56 million. While we have had a
very strong start and are $4 million ahead of the same period last year, we
have not changed our full-year forecast.
Further information:
Mark Dewdney, Chief Executive Officer
Ph 027 248 3151
*All references to PGG Wrightson Limited or the Group refer to the Company,
its subsidiaries and interests in associates and jointly controlled entities.
**Disclosure Statement: Non-GAAP profit reporting measures:
PGW's standard profit measure prepared under New Zealand GAAP is
profit/(loss) for the period. PGW has used non-GAAP profit measures when
discussing financial performance in this document. The directors and
management believe that these measures provide useful information as they are
used internally to evaluate performance of business units, to establish
operational goals and to allocate resources. They also represent some of the
performance measures required by PGW's debt providers. For a more
comprehensive discussion on the use of non-GAAP profit measures, please refer
to the policy "Non-GAAP Financial Information" available on our website
(www.pggwrightson.co.nz).
Non-GAAP profit measures are not prepared in accordance with NZ IFRS and are
not uniformly defined, therefore the non-GAAP profit measures reported in
this document may not be comparable with those that other companies report
and should not be viewed in isolation or considered as a substitute for
measures reported by PGW in accordance with NZ IFRS.
PGW's definition of non-GAAP profit measures used in this document:
Operating EBITDA: Earnings before net finance costs, income tax,
depreciation, amortisation, fair value adjustments, non-operating items and
equity accounted earnings of associates
End CA:00247467 For:PGW Type:HALFYR Time:2014-02-25 14:53:12
