Land, livestock offset forest loss

Good real estate returns and livestock sales have helped listed rural services company Allied Farmers offset its forestry losses.

The Taranaki-based company returned a profit of $3.17 million for the year to June 30, 2005 - up 8 per cent on the previous year. The pre-tax profit was $3.47 million - down from $4.48 million.

Net cashflows from operating activities dropped to $2.14 million from $3.16 million the year before.

Chairman Brian Train said forestry division Allied Pine had been hurt by the strength of the dollar and the downturn in demand for building timber in Australia. But the real estate division had an exceptional year, as did livestock sales.

Returns from merchandising were "satisfactory". They had exceeded industry norms but had been eroded by increased competition.

Train said Allied Farmers Finance had increased its contribution to the group. The company has declared a final fully imputed dividend of 5c a share, plus a special dividend of 5c a share.