The company is travelling well. Bruce De Lacy is a tight operator so he is cutting overheads. New farm is doing well and the cost are down compared to the other farms (automation). Have cash to invest further if market conditions warrant it.
He is reinvesting the cash to upgrade the fixed assets of the other farms (new technology, automation) to increase margins so no dividend.
He is signing new agreements for cheap feed and is shrewd operator and will wait to sign new wheat agreements.
Change in management 4 senior managers replacing all previous management. (Best in business according to De Lacy)
There have been six other companies prosecuted this year alone for mixing their free range labelled products. FRM has engaged with a business to prove that their eggs are the real eggs through some scientific testing (only egg producer in the country to have this).
So FRM has engaged in a contract with new marketing company to promote FRM products (5-year contract for brand identity.
Free cash will allow opportunities that are not just organic growth (acquisition I imagine).
No disease was total rubbish. (If someone occurs he will inform the market).
Resolutions passed.
Cutting overheads so will almost definitely not increase investor communications.
It’s the spring flush season so national inventory egg stocks are high, but because of small free range only farms this will most likely drop in the hot summer.
FRM Price at posting:
$1.75 Sentiment: Buy Disclosure: Held
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