Seller and marketer of rural products, Ruralco Holdings Ltd
(ASX:RHL) has lifted its expectations for profit in the first half and says it is in a good position to take advantage of improved seasonal conditions throughout the country.
Ruralco says it expects net profit after tax for the first six months of the year to be around 15 - 25% higher than last year’s first half result of $6.3 million.
Managing director, John Maher, says the company’s real estate businesses have performed better over the first six months of the year and recent acquisitions in integrated water solutions and grain marketing have contributed to improved results.
However, Mr Maher noted that the stockfeed, seed and grain division continues to be negatively impacted by lower levels of demand for stockfeed in the Tasmanian dairy market and reduced grain prices.
Looking ahead the company says its full year profit would depend on continued improvement of farm input prices and soft commodity values, as well as a steady recovery of real estate and rural property values.
Ruralco booked a profit for the year to September 30, 2009.
