Excellent result for Alliance

Invercargill-based Alliance Group has recorded an operating surplus of $42.1 million from a turnover of $1.5 billion for the year to September 30. It will make an extra payment of $15m to its farmer shareholders related to the livestock they supplied, as well as pay a 5c full imputed dividend, worth $2.8m, based on share holdings reports The Southland Times. A bonus issue of 18.6 million shares is also planned this year so the company's farmer owners can share in its growth and receive a larger share of its equity. Chairman Owen Poole said the company had recorded a strong profit and provided "very good returns" with lamb prices at record levels."It is somewhat unfortunate that we reflect on a successful year at a time when an unhelpful New Zealand dollar looks set to undermine returns in the year ahead," he said. Chief executive Grant Cuff said the 2008 profit was the second biggest in its 50-year history, partially because of favourable exchange rates at the right time of the year. "The farmer has received so much more in his business and his company (Alliance) is still continuing to provide a good dividend, a good additional top up to the farmer at the end of the year, and additional shares to reflect the growing company." It was too early to judge how this season would perform but early indications suggested the demand and prices from overseas markets were similar to last year, Mr Cuff said. But a big difference this year would be in the foreign exchange rates "“ in March, US$100 would return NZ$200, two weeks ago it was NZ$133, he said.