KEY POINTS:
The dairy boom has helped listed rural services and finance company Allied Farmers turn loss into profit.
Net profit for the year ending June 30 was $2.4 million, compared to a $2.8 million loss the previous year, on the back of revenue of $116.2 million, up from $97.6 million.
The main factor behind the turnaround was the best income and profit performance in the firm's rural division in a decade.
Chief executive David Bale said the company had enjoyed the patronage of increasingly wealthy dairy farmers and was a big player in the movement of cows for dairy conversions.
"It's a good year this year," Bale said.
"If I could do it again it would be wonderful."
There were 240 farms waiting to be converted to dairying, which would require about 200,000 cows, he said.
Finance subsidiary Allied Nationwide made a pre-tax profit of $3.9 million.
Chairman John Loughlin said the overall result has been affected by the turmoil in the finance market, which was the main reason the company did not achieve a goal of $6 million before tax.
Group pre-tax profit was $3.2 million, compare to a loss of $3.3 million the previous year.
Allied Nationwide paid out $107 million of maturing debentures during the year and had an average re-investment rate of about 34 per cent.
A purchase of Speirs Finance was awaiting approval by Standard & Poor's and the debt investors of both companies, and should be completed by the end of September.
The Speirs Finance acquisition would grow the debenture and loan books, and provide access to a $250 million securitisation programme, with funding underwritten to $150 million by BNZ. Allied Farmers shares were steady at $1.28 yesterday.
TURNAROUND
Year to June 30
Revenue
2008 - $116.2m
2007 - $97.6m
Net profit (loss)
2008 - $2.4m
2007 - ($2.8m)
