PGG Wrightson has lifted its profit expectations and plans to resume paying shareholders a dividend.
Photo: Facebook / PGG Wrightson
The rural services company has issued a tentative guidance for the current financial year and expects operating earnings of about $52 million, up 30 percent on last year's result.
Accounting for one off tax charges, it would be about $30m, a 15 percent increase on the year earlier.
"We will maintain a close watching brief on the impacts that the global pandemic continues to have on trade flows and demand for New Zealand primary exports and consequential implications for PGW," PGG Wrightson chairman Rodger Finlay said.
He said the company's start to the first quarter was pleasing, with strong demand for rural and horticultural supplies and a recent uptick in buyer interest for lifestyle and rural properties.
The company said it also expected to resume dividends, which were suspended because of the economic uncertainty brought on by the pandemic.
"Although a decision on the interim dividend will not be made until the release of PGW's half-year results in February, it is the expectation of the Board that an interim dividend of no less than 8 cents per share would be declared based on trading performance remaining within current guidance," Finlay said.
PGG Wrightson received $4.1m from the government's wage subsidy scheme.