PGGW shuts real estate & stock business in Aussie
20th Jan 09, 10:48am
PGG Wrightson Ltd., NZ's biggest rural services company, will close its Australian real estate and livestock businesses, citing tough market conditions and a subdued outlook reports Scoop. The shares dropped about 7%. The company will close four offices that employ 39 people in the states of New South Wales and Victoria, according to a statement from Wrightson. Last month, Wrightson cut its profit forecast for the year ending June 30, citing a loss at its real estate business, the economic downturn and a writedown of its stake in NZ Farming Systems Uruguay. Annual profit may fall to NZ$39 million to NZ$45 million, from a range of NZ$46 million to NZ$51 million, it said. Today it said existing commitments to clients in Australia "will be honoured and arrangements made, as required, to transition clients to other service providers." The closure doesn't affect the company's PGG Wrightson Seeds unit in Australia, it said.