PGG Wrightson has reported a bottom line annual loss of $30.7 million after a provision for supply of livestock to Silver Fern Farms and other items but is signalling growth in its core seed business.
Earnings before interest, tax, depreciation and amortisation were $49.4 million in the year to June 30, 2011, down from $57.2 million in the same period a year ago. Operating revenue of $1.2 billion was up from $1.09 billion. The company is not paying a dividend. PGG Wrightson shares eased a cent to 45 this afternoon.
When provisions and fair value adjustments totalling $47m were included the company reported a loss of $30.7m compared to a profit of $23.3m the previous year.
The auditor gives an unqualified opinion of the accounts but draws investors' attention to a note in the accounts which describes the assumptions used to determine the value of goodwill. Goodwill is an intangible asset.
In 2009 the company entered into a 10-year livestock supply contract with Silver Fern Farms under which it has to make payments if it is unable to supply.