Cattle company posts $4.8m profit

By LIAM DANN and agencies

Livestock Improvement - the farmer-owned co-operative that breeds the nation's cattle herd - has posted a net profit of $4.8 million for the year to May 31, up $1.4 million on the previous year.

Total operating revenue was $98.3 million, up from $92.4 million in 2003.

The profit after tax but before investment in biotechnology research was $8.4 million. Sixty per cent of that will be distributed as dividends.

Chairman Stuart Bay said the result exceeded expectations and confirmed it was on track to meet growth targets.

Livestock Improvement listed on the NZAX in May.

Dairy farmers hold two classes of shares. Co-operative control shares are not traded and are used to determine voting rights.

Ordinary investment shares are traded and were originally allocated to farmers on the basis of 10 for every one control share owned.

"This is the first time since the dual share structure was enacted that dividends have been paid, and the result is a sound one for both groups of shareholders," Bay said.

A dividend of 16.3c will be paid for each ordinary investment share and a 7.9c dividend will be paid on the co-operative control shares.

Both dividends will be paid on July 31. Livestock Improvement shares closed at $1.42.