Richmond forecasts pre-tax full-year profit of around $39 million

1.00pm

Richmond today forecast its profit before tax for the year ending September would be in the region of $39 million, up from the $20 million pre-tax profit posted the previous year.

Richmond chief executive Richard Carver, said in a statement today the company had benefited from "exceptionally strong" trading in March to June with strong volumes, record worldwide beef and lamb prices and more favourable foreign exchange.

On June 15 Richmond, which is the subject of a takeover bid by PPCS, had said it expected to comfortably exceed its prior year profit before tax, but did not elaborate.

The first half of the current financial year was trying for the meat company, which posted a net profit of $433,000 for the half year to March, slumping from $14.2 million for the same period last year. The company said the strong New Zealand dollar and inclement weather had pushed its profit down for the period.

At 11.30am today Richmond shares were up 4.92 per cent, or 15 cents, at $3.20, a high for the year. The stock has traded between $2.00 and $3.16 over the past 12 months.

PPCS has offered $3.11 a share to acquire the 37 per cent of the company it does not already own.

- NZPA