Rural servicing co-operative CRT expects turnover to exceed $1 billion this financial year as acquisitions and investments start to bear fruit.
The South Island company reported turnover of $801 million and an operating surplus of $5.1 million in the year to March 31, a slightly poorer result than last year, a record year with a reported turnover of $802 million and an operating surplus of $12 million.
In the past five years, CRT has almost doubled its turnover of $430 million and assets of $82 million, in what chairman Don McFarlane said was a very competitive industry.
He described last year's result as "satisfactory", saying it had been difficult, with most agricultural sectors experiencing tight cashflow or dry weather, meaning those that had better returns were unable to take advantage.
In the past year, CRT had re-entered the livestock and finance servicing industries, bought the rights and the national distribution of Challenge fuel, acquired the Hawkes Bay fuel distribution business of Bushetts and VJs and, subsequent to balance date, the South Canterbury-based business Annett Grain and Seed.
Mr McFarlane said the goal of a $1 billion turnover was within reach as those businesses matured and their contributions increased, and given a more positive business outlook, especially for dairying.
Company assets grew 11.5% in the period under review, from $137 million in 2009 to $154 million, while the number of shareholders increased from just under 24,000 to 24,655.
Rationalisation of the rural servicing sector would continue, and Mr McFarlane said CRT was playing its part.
However, Silver Fern Farms criticised CRT's return to livestock servicing.
It said the move would hinder the flow of information and relationship between farmers and meat companies.
While turnover was marginally down, revenue grew from $724 million in the 2009 year to $731 million in the year under review, while the cost of goods sold was also up, from $637 million to $649 million.
In line with policy, 80% of the net operating surplus, or $3.45 million, would be distributed to shareholders in cash and shares, which was in addition to $24.5 million distributed through monthly rebates and loyalty points during the year.
