13 Aug 2013

$306.5m net loss posted by rural services company

2:35 pm on 13 August 2013

Another write-off, this time of $321 million, has meant PGG Wrightson has posted an annual net loss of $306.5 million.

As well, operating profit for the troubled rural services company fell 17% to $45.7 million for the 12 months ended June. This is almost $10 million down on the previous year, $55.1 million.

PGG Wrightson said the goodwill write-off relates to the merger which created it in 2005.

New chief executive, Mark Dewdney, who took over six weeks ago, said drought in the North Island and Australia, as well as reduced prices for key agricultural commodities made late-autumn trading conditions challenging.

Retail, wool and irrigation businesses performed strongly, but conditions were more challenging for livestock, real estate, seeds and grain.