DF Mainland Securities bullish on Richmond

Investment broker DF Mainland Securities is predicting Hastings-based Richmond Ltd's profit for the year will be $22 million - $3 million ahead of the level the company forecast when it listed on the Stock Exchange earlier this year.

DF Mainland expected Richmond's profit to rise to $25 million in the next financial year.

In advice to its members, DF Mainland said Richmond was its preferred stock in the meat industry and on all financial, strategic and management measures outperformed its listed rival, Affco.

It said the meat industry was now profitable, with strong commodity prices and a relatively weak dollar.

"We expect a continuation of this theme over the next two years, with only a modest weakening of returns in the coming season," it said.

PPCS recently paid $3.60 a share to obtain control of Richmond, a 50 per cent premium on the present market price.

DF Mainland expects Richmond to be significantly re-rated on the announcement of its full-year result on September 30.

Richmond rose 5c to $2.60 yesterday.

- NZPA