Listed rural services company PGG Wrightson is expected to show signs it has emerged from a difficult couple of years when it announces its annual result today.
Analysts expect the actual numbers to not be any better than last year, but company restructuring, a stronger balance sheet and bright long-term prospects for agriculture point to a brighter future for the company.
Research by Craigs Investment Partners forecasts a dip in sales from, $1.3 billion in 2008-09 to $1.1 billion for the 2009-10 year.
It also predicts earnings before interest, tax, depreciation and amortisation to fall from $81 million to $72 million and a lower net profit, from $30 million to $23 million.
But, Craigs also forecasts a rapid financial recovery in coming years, as the company benefits from structural changes that include some divestment and reorganisation and an expected global shortage of food.
It has been a difficult year with drought curbing spending and tight credit conditions impacting on sectors such as real estate.
The annual result by rural servicing company CRT shows just how tough it has been, with company management commenting that even though product prices were better, a dry summer meant many farmers could not take advantage.
CRT recorded an operating surplus of $5.1 million off turnover of $802 million, which highlighted the competition for farmer spending.
There was further good news for PGG Wrightson yesterday, with nearly 90% of bondholders in PGG Wrightson Finance approving a deadline extension of its $100 million NZDX listed secured bond issue.
The issue will now expire on October 8 next year and the coupon rate will remain at 8.25%.
