LIC
24/08/2012 16:32
S/HOLDER
REL: 1632 HRS Livestock Improvement Corporation Limited (NS)
S/HOLDER: LIC: LIC dividend letter to all shareholders
The following letter has been sent to all LIC shareholders today.
24 August 2012
Dear Shareholder
I am pleased to report that your Cooperative delivered a strong performance
in 2011/2012 reflecting farmer demand for LIC products which make farming
easier and more profitable.
Our Protrack farm automation range and GeneMark DNA parentage verification
products, in particular, enjoyed record sales. Web-based products like MINDA
Milk, Weights and Land & Feed were popular with farmers wanting products
which help them make more informed decisions on farm.
The price freeze applied to all products in 2009/2010, in recognition of the
tough financial conditions we were experiencing on farm, remained in place
for Premier Sires in 2010/2011 and 2011/2012 with a slight increase in the
price of MINDA and herd testing. These increases were, however, offset by the
launch of innovative free products like the MINDA products mentioned above.
LIC is a profitable business with revenue growth of 10% over the previous
year offset by a $4.7 million credit made to early adopters of DNA Proven
semen in the 2008 year. Revenue for the 2011/2012 year was $177 million, 7%
ahead of the $166 million achieved during 2010/2011. Net profit, after tax,
was $24.4 million, up $6.8 million over the previous year reflecting the
increase in fair value of the elite biological assets (bull and stag teams).
All profit is returned to shareholders through reinvestment in the business
and dividends to Cooperative and Investment shareholders.
LIC financial performance 2006 - 2012
LIC continues to report a strong balance sheet with total assets including
cash, software, land and buildings and bull teams of $260.5 million, an
increase of $23.6 million over the previous year with an equity ratio of 75%.
Cash flows from operations were strong for the 2011/2012 year generating
$27.7 million, up from $21.4 million in 2010/2011. Investments during the
year were $14.8 million, down $7.5 million on the previous year.
LIC will pay a dividend of $11.99 million, representing 80% of underlying
earnings, to Cooperative and Investment shareholders. This contrasts with
the dividend paid in 2011 of $13.6 million, and $7.3 million in 2010.
Details of the fully imputed dividend are set out on your Dividend Statement
included with this letter
The 2011/2012 net dividend translates to 8.4 cents per Cooperative Control
Share and 39.2 cents per Investment Share and represents a gross yield of
11.1% on Investment Shares compared to 17.6% last year. Details of the fully
imputed dividend are contained in the Dividend Statement included with this
letter.
Annual Report
In accordance with the Companies Act, companies are no longer required to
automatically mail printed copies of the Annual Report to Shareholders. The
Annual Report and financial statements are now available on our website
www.lic.co.nz/newsandpublications. However, if you would like to receive a
printed copy, please email Pauline Hodges on [email protected] or phone 07
856 0855.
In closing, I want to thank you for your support and wish you a productive,
profitable and enjoyable season.
Yours faithfully
Murray King
Chairman
End CA:00226440 For:LIC Type:S/HOLDER Time:2012-08-24 16:32:28
(20min delay)