ferret's stock to watch: rural press limited

Ferret's Stock to Watch: RURAL PRESS LIMITED
05:48, Monday, 25 October 2004

Sydney -Monday - October 25: (RWE)
**********************************

OVERVIEW
********

Rural Press emerged as a highly prospective group after the
upheavals in John Fairfax in the late 1980s caused by the stock market
crash in October 1987.

The Fairfax rural interests were part of the settlement for the
Vincent Fairfax side of the family to go their own way and leave Warwick
Fairfax to do his own thing supported by his mother and which finished
up a disaster.

Since then chairman John B Fairfax has built Rural Press into a
significant media group and a force to be reckoned with in any media
re-alignments following the election.

Mr Fairfax told the annual meeting on Friday that trading
results, as a whole, for the first 16 weeks were ahead of target and
ahead of last year.

"The Australian Stock Exchange continuous disclosure guidelines
require companies to announce when their current year performance is
likely to exceed the previous corresponding period by 10 to 15 per
cent," Mr Fairfax said.

"Our first half result, in comparison to last year, will benefit
from the inclusion for the first time of the Harris and Co and Bundaberg
Broadcasting acquisitions as well as an additional week of trading.

"Including these one-off benefits, and barring unforeseen
events, we are optimistic of achieving at least a 25 per cent increase
in first half profits.

"However, it is unlikely growth in the second half will be at
this level, he declared.

He was happy to reflect another impressive result for 2004 and
indicated that the new financial year had got away to a sound start.

Earlier at the meeting, Mr Fairfax drew a comparison of his
company being likened to an Olympic athlete.

"This time four years ago, at the time of the Sydney Olympics, I
likened our company to our then successful athletes in achieving a
personal best.

"Four years later, with the completion of the Athens Olympics, I
am going to be so bold as to again liken us to our very successful
athletes as we too have again scored a personal best by achieving a 27.3
per cent lift in net profit after tax and minorities, to a record $87.1
million.

"It is worth noting that this record surpasses by 64 per cent
our personal best of four years ago of $53 million.

"As with athletes, these satisfying results don’t just happen.

They only come about through dedication, energy, commitment,
clear objectives, and by striving for a continuous improvement in all
facets of the business.

The chairman told the meeting, "We are fortunate in having a
management team surrounded by dedicated and enthusiastic staff within
our group that possess those qualities, and who are responsible for
these successive improvements in annual earnings, and in turn, dividend
payments to our shareholders.

"Perhaps these records are achieved by a substance coursing
through the veins of our management athletes (other than printers ink) –
a substance known as adrenalin.

"High volumes of advertising and a multitude of news stories
during the year have enhanced the bottom line and also given
encouragement to those who work on behalf of shareholders.

"We are grateful to management and staff for what they have
achieved," he said.

As mentioned in the August 26 profit announcement, the 27.3 per
cent growth was driven by the company's core Australian publishing and
printing operations, demonstrating the widespread economic strength in
regional markets in Australia.

SHARE PRICE MOVEMENTS
*********************

Rural Press shares rose 11c to $9.50 on Friday Rolling high has
been $9.58 and low of $6.70. Dividend is 39 cents a shares to show a
yield of 4.11 per cent.

The chairman told shareholders that despite lingering drought in
some parts of the Eastern seaboard, Australian agricultural publishing
recovered the revenues and profits lost in the prior year, assisted by
increased volumes of national, property and classified advertising.

Our regional and metropolitan publications achieved one of their
strongest years of growth for the last decade, driven by the buoyant
real estate market, local and classified advertising.

Importantly, a majority of all our paid publications achieved
circulation growth.

These advertising and circulation revenues would not have been
possible without our ability to offer extensive full colour
opportunities to our advertisers and readers.

"The ongoing expansion of our press facilities is vital to our
continuing success, Mr Fairfax said.

During the year, a number of press projects were completed,
including the new printing plant at Wendouree, Ballarat, and the company
implemented press capacity upgrades at Ormiston, Queensland, and Dubbo,
New South Wales.

Computer to plate technology at Wendouree enhanced production
efficiencies.

INVESTMENT IN EQUIPMENT CONTINUES
*********************************

The pace of press investment is proceeding unabated in the
current year with further press upgrade commitments for Ballarat, only a
year after the original press was commissioned.

Press upgrades are also taking place here at North Richmond, in
Canberra and Port Macquarie, New South Wales.

The company establishing a "greenfield" printing site at
Mandurah in Western Australia.

Anticipated capital investment of $60 million this year includes
$50 million for those printing projects together with approximately $10
million on technology maintenance in the group.

This ongoing investment in technology is vital to satisfy
effectively the needs of our internal and external publishing customers.

New Zealand agricultural publications maintained previous profit
levels in a more cautious agricultural market, impacted by the increased
value of the New Zealand dollar.

On a positive note, our United States operations have new
management and a new business plan to move us forward.

"We have set a course in a new strategic publishing direction
which involves targeting both the state-based advertising market whilst
maintaining our share of national advertising.

"The strategy is being implemented in this current quarter, Mr
Fairfax told shareholders.

"Your Board visited our US operations during September and
returned quietly confident that these operations are on the cusp of
something better.

"We have re-launched our monthly state-wide titles and the new
formats and editorial focus have been widely acclaimed, chairman
disclosed.

In radio broadcasting, the Ipswich station improved marginally
in a competitive market, whilst the South Australian stations maintained
last year’s levels.

During the year, Rural Press continued its proud tradition of
making acquisitions.

Its geographic footprint in Tasmania was extended when the
company acquired an 85.3 per cent interest in Harris and Company
Limited, publisher of The Advocate, Burnie and several smaller
circulating free publications in North West Tasmania.

The purchase included a modern MAN Uniset Printing press, an
automated publishing room and computer to plate technology, as well as a
sheet fed printing business. Since January 2004, with new

Mr Fairfax declared, "We continue to look at new opportunities
whether they be organic growth or acquisitions and we are in a good
position to take advantage of new ideas and new ventures.

"We are also aware of the regard our company has in the
community for its steady performance over many years.

"Our aim is to preserve what we have but also to be prepared for
change and if necessary, adaptation.

"We shall continue to do this in a professional and disciplined
way.

BACKGROUND
**********

Rural Press Limited is a specialist agricultural and regional
publisher that has as its hallmark, service to the communities its
publications reach.

The company was listed on the Australian Stock Exchange on March
16,1989.

Its roots are deeply embedded in country Australia.
The first publication - The Land - was launched in 1911 by a
group of like-minded people who felt that farmers and graziers needed a
strong advocate in the face of what was seen at the time as
agriculture's diminishing political and economic influence.

Those reasons for the introduction of The Land more than 80
years ago - because as the first editorial pointedly stated - "it is
needed" - hold firm today, and have been strongly embraced by the
company and its employees.

Together, Rural Press' directors, management and staff are
dedicated to striving tirelessly to enhance the economic, political and
social well-being of rural and regional communities in every town, city,
region, State and country in which the company is involved.

Rural Press believes its dedication to fostering rural and
regional interests wherever the company operates has been and remains a
worthwhile endeavour.

The company derives much of its revenue from country people and
country-related industries.

It serves the people of regional and rural Australia through our
publications and our printing sites.

In addition, looks after the rural people in New Zealand and the
United States of America.

ENDS

Copyright © 2004 RWE Australian Business News. All rights reserved.

>>>>>>>>>>>>>>>>

I don't hold RUP

Cheers,

Fig Jam