AFFCO half year profit result

Affco Holdings Ltd today posted a $15.29 million net profit for the six months to March 31, up 52.8 percent on the same period last year, boosted by rising international prices for lamb reports The National business Review. "The increase in turnover and profitability is a reflection of higher market returns, and continued improvement in operational performance," said chairman Sam Lewis. It was based on a 17.98% lift in revenue, to $588.25m. The company's net profit before tax was $21.82m -- was an $11.44m improvement over the same period of 2008 -- and tax costs were $6.52m. Earnings per share for the half year were 3.03c/share (1.98c previously)."While the worldwide financial situation remains uncertain and turbulent, it is imperative to maintain a strong balance sheet," said Mr Lewis. The company's main shareholder is Talley Group Ltd. Last November Affco posted a net annual profit after tax of $60.194 million -- a significant boost the previous year's profit of just $1.2 million, but noted it comprised $40.8m from trading activities and $19.4m from sale of shares in its dairy arm. Since then its stake in Dairy Trust Ltd has fallen from 44 percent to 35.5 percent, and the venture's contribution to profits has fallen from $1.09m to just $83,000. The company continued to record nil gains from its 30 percent stake in the ill-fated Chinese company, Wuliangye Affco Golden Ox Ltd. Receipts from customers jumped sharply to $505.21m ($397.6m) with higher payments to suppliers and staff totalling $585.42m ($460.2m), but the net operating flow also rose to $84.29m ($67.35m). The meat processor finished the half with $10.9m cash, compared with a $3m deficit on its bank overdraft last year.