28th Sep 2016 06:59
LONDON (Alliance News) - Agricultural services company Origin Enterprises PLC said Wednesday that unseasonal weather and weak farming sentiment led to a highly competitive trading environment and impact its profitability for the financial year.
Origin made a pretax profit of EUR65.5 million for the financial year ended July 31, down 26% from EUR88.2 million the year prior. Revenue for the year edged up by 4% to EUR1.52 billion from EUR1.45 billion, but the company said that stripping out currency and acquisitions, underlying revenue decreased by 3.7%.
Origin is recommending a final dividend of EUR0.1785 which, combined with its interim dividend, will maintain its full year dividend at EUR0.21 at the same level as the year prior.
Origin said the results were in line with market expectations against a challenging trading environment, with a recovery in volumes in the fourth quarter following a weak third quarter. Origin also highlighted a strong performance from its Central and Eastern European farm services businesses which it acquired in 2016, and said their integration was going according to plan.
Chief Executive Officer Tom O'Mahony said: "We remain committed to expanding Origin's footprint and will continue to prioritise investment in strategic acquisitions as well as in the further development of the group's crop management systems and yield technology transfer platforms."
"Notwithstanding the fact that sector sentiment remains subdued reflecting the current pressures on farm incomes, the Group is well positioned to respond to present market conditions and to benefit from a sustained improvement in primary producer returns," he added.
By Adam Clark; [email protected]
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