25 Feb 2010

Small profit by PGG Wrightson

12:14 pm on 25 February 2010

Listed rural services company PGG Wrightson has made a small half-year profit, as farmers spend less in its stores.

The listed rural services company made $4.1 million in the six months to December, a turnaround from the 32-.8% loss it made in the same period a year earlier.

The previous result included non-operating losses and fair value adjustments worth $47.2 million.

Earnings fell by more than half to $25 million.

PGG Wrightson raised almost $250 million from shareholders last year, including its new cornerstone shareholder, Agria - which it used to repay $200 million worth of debt.

Despite its stronger financial position, managing director Tim Miles says trading conditions have been difficult in the last six months.

The company will not pay a dividend.

And there's been a shakeup within the company's board - which will be reduced from 11 to 10 members.

Chairman Keith Smith will be replaced by Sir John Anderson, who joins the board next month, though Mr Smith will remain a director.

Craig Norgate, Baird McConnon, and Murray Flett, who have been directors since the company was formed in 2005, will step down. Alan McConnon will become a director.