20 Jun 2014

PGW result likely better than forecast

6:54 am on 20 June 2014

Rural services firm PGG Wrightson has issued an earnings upgrade.

The company says its full year gross earnings will be between $56 million - $58 million, slightly above expectations in February.

PGG Wrightson chief executive Mark Dewdney said the market and the company's trading performance had held up well in the past six months despite some localised challenges such as drought.

Mr Dewdney said in recent weeks the dairy forward herd sale contracts were settled to close out the season for its livestock unit, which reported a record month for May.

He said increasing prices for sheep and beef, and higher than forecast cattle auction volumes also helped.

PGG Wrightson stock agents at the Rangiuru saleyards.

PGG Wrightson stock agents at the Rangiuru saleyards. Photo: PHOTO NZ

PGG Wrightson has also bought a property company, AG Property, that owns a number of properties it leases for $30 million.

AG Property collectively owns 40 properties that combine retail stores, seed processing sites and livestock saleyards throughout New Zealand.

Mr Dewdney said the acquisition provided the company with more flexibility to review its property and leasing needs.