Sanford profit slightly below previous year

Fishing company Sanford yesterday reported a profit of $23.7 million for the six months to March 31, slightly below the previous year's interim profit of $23.8 million.

Revenue fell 18 per cent to $173 million.

Directors announced an unchanged interim dividend of 9c a share, payable on June 23.

The company said a difficult market led to lower sales volumes for hoki, snapper and skipjack, and lower returns per kilogram.

But increased catches of skipjack and squid in local waters were offsetting reduced catches of hoki.

Snapper fishing, particularly off the North Island's west coast, was improving.

The company said it strongly opposed Government proposals to allocate 20 per cent of its catch history in the Pacific area tuna fishery - an area it described as "below expectations" and "marginal" - to Maori. It would not have entered the fishery had the policy existed at the time, Sanford said.

A cut in hoki quota was expected in October, resulting in the species' contribution to revenue falling to below 10 per cent next year from 18 per cent this year.

The timely sale of the 64m hoki freezer trawler San Venturer, concluded in the past few days, would add a $3 million tax paid profit to the second half result, Sanford said.

An improved result was forecast for the next six months, based on improving markets, better exchange rates and a successful squid season.