Affco unveils capital return to shareholders

1.00pm

Affco Holdings today confirmed it plans to return $20 million to shareholders by a pro rata cancellation of shares.

Chairman Sam Lewis said in a statement the capital return was subject to shareholder and other relevant approvals, including that of the High Court.

It follows "significant capital injections by shareholders in the past two years in addition to realisation of surplus assets and investments, which have been substantial," he said.

Affco was working toward returning the capital by September 30, its balance day, and Mr Lewis said "all shareholders will receive the capital return on a proportionate basis".

Meanwhile, the Hamilton based company said annual earnings were likely to exceed last year's $16m.

Trading in the third quarter had been favourable, Affco said in a statement to NZX.

"This, plus continued strong trading in offshore markets indicates that Affco's profit for 2004 financial year will exceed that of the prior year's result," it said.

At 12pm, Affco shares were up 2c at 33c, their highest since November 2000.

- NZPA