The release of Scales Corporation Ltd's profit results for the year ended June, signalled the start of the NZX listing process for a new company incorporating three major assets controlled by South Canterbury businessman Allan Hubbard.
Scales does not traditionally report its results publicly but Craigs Investment Partners broker Chris Timms expected the company to play an important role in the new Hubbard group which was expected to be listed early next year.
Newly registered Southbury Corporation is expected to include a smaller South Canterbury Finance, Helicopters New Zealand and Scales.
Scales reported a profit before tax of $17.4 million for the year ended June, more than double the $7 million reported in the previous corresponding period.
The profit after tax was $13.6 million, well up from the $7.5 million in the previous period.
Last year, the profit included a $528,000 tax credit.
Mr Hubbard said all components of the group contributed despite the challenging economic conditions encountered from the ongoing global financial crisis and adverse movements of international exchange rates.
"This was an excellent result with solid contributions across the board but particularly so in the cold storage and pet food ingredients businesses," Mr Hubbard said.
The group benefited from the recent purchase of the Silverstream industrial park, near Mosgiel, which was 85% leased, and higher dairy and horticulture production that led to increased usage of temperature controlled storage operated by Polarcold and Whakatu Coldstores.
Mr Timms said Scales was primarily based around the agricultural sector but it was a diverse group.
Its cash flows would help underpin the Southbury Corporation, when it was listed, he said.
However, it would be difficult for investors and analysts to determine what the core business of the listed company was and what would drive future growth.
Mr Hubbard had made no secret of his interest in the agricultural sector and it was expected Southbury Corporation would have a "tilt towards agriculture", Mr Timms said.
