16 Mar 2009

Large profit rise for PGG Wrightson Finance

2:14 pm on 16 March 2009

PGG Wrightson Finance has seen its half-year profit rise by 80%, as it lent more to farmers and some of its rivals became more cautious.

The company, owned by PGG Wrightson, made $4.7 million in the six months to December, compared with $2.6 million in the same period a year ago.

Net interest income rose by a third to $9.3 million, and its loan book stands at $513 million, with half of the amount loaned to sheep and beef farming operations.

PGG Wrightson director of financial services Mark Darrow says some of the major banks are tightening their books, and while PGG is being cautious, there are more opportunities to lend.

He expects sustainable growth of 20% a year underpinned by higher returns for the sheep and beef industry, which is enjoying better prices.