Livestock Improvement posts 43 per cent rise in net profit

Farmer cooperative Livestock Improvement said today its May year net profit rose 43 per cent to $7.6 million.

Revenue rose 6 per cent to $110.5m.

The net profit after tax but before biotechnology research spending was $10.9m.

A total dividend of 24.5 cents per investment share, up 24 per cent on last year's 19.8c dividend, will be paid on July 31.

A dividend of 8.5 cents per co-operative control share will also be paid.

Chairman Stuart Bay said the company was delivering "an excellent return to our shareholders in terms of dividend yield, let alone an increasing range of products and services".

The company, which has 12,500 farmer shareholders, puts around $3.5m aside for biotechnology research.

It was formed four years ago from Dairy Board assets split off in the formation of Fonterra.

It offers a range of services from herd statistics recording to dna analysis of top dairying performers.

Its biotechnology research is centred on finding gene markers to trace milk components and bull performance.

- NZPA