29 Oct 2010

PGG Wrightson to focus on cutting debt

7:06 am on 29 October 2010

PGG Wrightson is expecting flat earnings this financial year.

Last year, the listed rural services firm swung back into the black with a profit of $23 million, after losing $66 million the previous year.

PGG Wrightson told shareholders at its annual meeting that business conditions remain muted while the high New Zealand dollar continues to be of concern.

As a result, it will not pay a dividend this year, and instead will focus on reducing debt.

The company says the proceeds from the recent sale of its 11.5% stake in New Zealand Farmings Systems Uruguay will be used to repay debt.