KEY POINTS:
Allied Farmers today announced a net operating profit of $846,000 for the six months to December 31 against $758,000 a year ago.
Pretax operating profit rose to $1.43 million from $1.14m.
There was a strong performance from Allied Prime Finance, which declared a pre-tax profit of $2m, against a $863,000 loss by Allied Pine. The rural services operations of the group made a profit of $641,000.
The company took a one-off cost of $870,000 from integrating Allied Prime Finance.
Allied Pine's loss for the full year is forecast at $1.6m as it battles the high exchange rate.
Chief executive David Bale said management was investigating options to mitigate the continuing losses from this operation. He would not say what those options were. The mill employs 54 staff.
While the finance division is expected to remain strong, rural operations are likely to be influenced by the exchange rate and international commodity prices.
"Early indications are that dairy herd sales are unlikely to top the record set in 2006, which is a further reason for exercising caution.," Mr Bale said.
An announcement on a dividend would follow a February 27 board meeting.
Allied Farmers shares last traded at $2.05. They have traded between $2.00 and $2.62 in the last year.
- NZPA
