Rubicon posts flat year profit

Forestry and biotech investor Rubicon has reported a flat net profit of US$5 ($7.98) million for the June year.

The result was compared to a 15 month period ending in June 2005.

Rubicon's main investment is Tenon, which this week reported a 12-month operating profit before interest, tax, depreciation and amortisation of US$20 million.

US-based Tenon 's result was a turnaround from a disappointing first half.

Rubicon said its own operating profit was US$18 million including interest, income and before depreciation.

It was a "positive" result which excluded US$3 million in research-related costs spent by its forestry research arm, ArborGen.

Rubicon's chairman Stephen Kasnet said that during the year, Rubicon increased its stake in Tenon, now over 57 per cent.

He acknowledged Rubicon had not achieved its 17 per cent per annum target for shareholder returns, which it had previously always exceeded.

The company recorded a fall in share price largely as a result of "uncontrollable" and transitory events.

But it had no debt, and a cash balance of US$17 million. The cash balance had been reduced by investments in ArborGen (US$6 million), an increased stake in Tenon (US$9 million), and US$19 million from a share buyback.

He believed Rubicon could return to its 17 per cent target

ArborGen had made "excellent progress" on the commercialisation of its products, including eucalyptus plants for the US and Brazilian markets, he said.

Shares in Rubicon fell a cent to 94c. The stock has traded between $1.14 and 85c during the year.

- NZPA