PGG Wrightson result below pre-merger guidance

PGG Wrightson today posted a June year net profit of $27 million in line with last month's guidance but 10 per cent below that given a year ago when Wrightson and Pyne Gould Guinness merged.

Chairman Bill Baylis said the result reflected trading conditions materially less favourable than at the time of the merger in October.

He expected improved trading conditions in 2006/7, with the lower kiwi dollar boosting sheep and beef prices, together with improved returns in horticulture and continuing stable returns in dairying.

The merger forecast was for a $30m net profit after amortisation of $9m and net merger gains of $7m after tax.

The NPAT reported today is after amortisation of $10m and included a net gain of $7m in non-recurring items.

The company declared a fully-imputed final dividend of 6 cents per share, to be paid on October 2. With the interim dividend of 4 cents per share, total dividend was 10 cents per share.

- NZPA