Profit up, debt down for Elders in 2014 results
For the first time in six years Elders has delivered both a statutory and underlying profit and has again substantially reduced its debt.
In releasing its results for the twelve months to 30 September 2014, Elders announced a $3 million statutory profit and an $8.8 million underlying net profit, up $77.3 million on the previous year.
Elders Chief Executive Mark Allison says the company’s improved financial performance is the result of all product and geographic segments contributing to earnings.
“2014 has been a year of significant positive change for the company and we have established a platform from which to create real value for all our stakeholders in the future,” Mr Allison said.
“Our clients can therefore expect to see a greater investment in innovative technologies and in training our people so they can help them get the most out of their farming operations.
“Our Agency Services business was the largest contributor to our profit with a 13% improvement on the previous year due to the recovery of livestock prices and volumes as a result of dry weather turnoff and increased supply to international markets,” he said.
“Strong demand from Asian markets contributed to the strong performance in the Live Export Services business which recorded a $6.2 million underlying improvement.
Mr Allison said the repayment of Elders’ term debt will allow the Company to focus on directing future cash flows back into reinvigorating and strengthening our client offering.
“2014 has been about establishing a foundation to create value for stakeholders and now 2015 will be about embedding the initiatives that create that value,” he said.
“Now that we have the right foundation in place we can focus on the structured implementation of our Eight Point Plan and work towards achieving our target of $60 million EBIT and 20% return on capital by 2017.
“The Eight Point Plan is our three year strategic plan and we’ve identified initiatives that we believe will see a steady and incremental growth in EBIT from all products and geographic segments,” Mr Allison said.