Rural service company Wrightson credits cutting costs and refocusing on clients for reviving its flagging fortunes.
The company yesterday reported a bottom-line profit of $7.5 million for the June year.
The result was a big turnaround of last year's full after-tax loss of $9.3 million, said chairman John Palmer.
Wrightson began costly restructuring in 1996, which lost it hundreds of farmer clients and caused the sale of its only profitable arm, Wrightson Farmers Finance.
The company has 80,000 clients and 72 outlets.
"Compared with this time last year, although the result is pleasing in terms of growth of shareholder funds and company size, I acknowledge it's only an average absolute result," Mr Palmer said.
"Given the current positive sector conditions - and I don't expect the economic conditions to deteriorate - I would be very disappointed if we didn't report a result better than $7.5 million next year."
Conditions in some parts of the agricultural sector were the best in 30 years, he said.
Geographically, the combined $9.7 million profit from operations in New Zealand and Uruguay was larger than the group profit. However, the Australian arm posted a $2.2 million loss, because of drought and problems with the seed and potato sectors.
Wrightson generated earnings before interest and tax of $13.1 million, compared with a loss before interest and tax the previous year of $9.1 million.
The company will pay a final dividend of 3c a share, making a total for the year of 4c - a 73 per cent payout of net earnings.
Chief executive Dr Allan Freeth said the company had made progress on initiatives to support its business strategies, including the rollout of the Livestock Auction Management System, now operating at 19 key selling centres.
"We want to offer solutions to clients - we've been largely a broker of commodities until now."
Those solutions - for example, matching the right grass, livestock genes and fertiliser - would increase farmers' profitability by up to $400 a hectare, Dr Freeth said.
Wrightson planned to improve earnings in the coming year by boosting revenues in seeds, potatoes and rural supplies.
The company would also focus on improving the Australian operations, and was expanding its forestry business.
Shares rose 4c to 59c yesterday afternoon, 20c higher than six months ago.
- NZPA
Wrightson back in the black
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