13 Aug 2010

$23.3m profit reported by PGG Wrightson

7:40 pm on 13 August 2010

PGG Wrightson is back in profit.

The rural services company made a profit of $23.3 million in the year to June, a turnaround from a loss of $66.4 million in the previous year, which included $96.4 million of one-off costs.

Excluding one-off items, PGG Wrightson's profit stood at $30 million.

The company previously forecast a full year profit of about $24 million.

Last year, the company raised money to bolster its financial strength, including Chinese investor Agria taking a 13% stake.

PGG Wrightson has about 15% of New Zealand's $5 billion rural services market providing retail, finance, livestock and property services.

It holds an 11.5% stake in New Zealand Farming Systems Uruguay, which it has said it will sell if a takeover offer from Olam International of Singapore, is successful.

Shares in PGG Wrightson Finance fell 3 cents to 53c on Friday.