PGC boosts half-year profit

Pyne Gould Corporation today announced a 33 per cent rise in net profit for the half year ended December 31.

PGC posted a net profit of $14.3 million for the period, up from $10.8 million for the previous corresponding period.

Ignoring one-off items, the net profit was $13.5 million, up from $10.5 million on a like-for-like basis.

A fully imputed interim dividend of 7 cents per share will be paid, up from 5.5 cps. Earnings per share for the half year rose from 11 cents to 14.6 cents.

PGC's financial services division boosted its net profit by 22 per cent to $11.8 million, rural services' profit improved 32 per cent to $5.3 million.

Total operating revenue rose 10 per cent to $236.9 million.

Looking ahead to the rest of the year, PGC said in a statement it expected the favourable economic environment for its financial services business to continue for the remainder of the year, while the rural sector remained buoyant, despite the strength of the New Zealand dollar.

"Pyne Gould Corporation is therefore anticipating a further increase in total group net surplus for the full year to 30 June 2005 and with that, another increase in final dividend," the company said.

PGC reported a net profit of $25.96 million for the year ended June 2004.

Yesterday, Pyne Gould Guinness (PGG), which is 56 per cent owned by PGC reported a net profit of $8.2 million for the half year, up from $6.4 million for the equivalent period last year.

Meanwhile, PGC managing director Richard Elworthy today announced his retirement from the role from July 4.

He will continue as a non-executive director of the company and its subsidiaries MARAC Finance, Perpetual Trust and PGG.

PGC has decided to combine the managing director position with that of Marac chief executive in the new position of managing director Pyne Gould Corporation/Marac Finance. The new position will also include the chairmanship of Perpetual Trust.

Current Marac chief executive Brian Jolliffe will take up the position from July 4.

Shares in PGC rose 1c to $4.19 in morning trade, while PGG shares were down 9c at $2.05.

- NZPA