Farm services group Ruralco has lifted its half-year profit three per cent to $10.8 million, helped by solid growth from its agency businesses, water activities and live export sales.
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The diverse rural commodity marketing, farm inputs and equipment and selling agency outfit reported an 8pc lift in sales revenue to $803.7m.
Gross profit was up 7pc on the same period last year to $160m.
Despite below average rainfall conditions weighing on business activities across eastern Australia, underlying profit for the six months to March 31 was up 2pc to $11.5m.
However, Ruralco will trim its fully franked interim dividend to eight cents a share (a 54.8pc payout ratio), compared to nine cents for the same period a year ago.
More customers, increased restocker demand and higher livestock prices lifted the company’s livestock business gross profit 10pc above results of a year ago.
Real estate gross profit jumped 19pc above the same period last year.
Strong domestic and offshore demand, fuelled by good livestock prices, had prompted renewed activity in the large rural property market, said managing director, Travis Dillon.
The company’s debt gearing increased 2.2 points to 33.3pc, partly due to its ongoing investment in new acquisitions and working capital demands.
Ruralco told the Australian Securities Exchange lower financing costs of $1.1m were however, offset by higher depreciation, amortisation and tax expenses, partly in response to its improved profit performance.
