Scales raises interim dividend
CHRISTCHURCH: Scales Corp will pay a bigger interim dividend than a year ago and says it may exceed annual earnings guidance as all its units are tracking ahead of 2017.
The board declared a fully imputed dividend of 9.5c per share, up from 9c a year earlier, and said earnings before interest, tax, depreciation and amortisation would be at the top end of will slightly exceed current guidance of between $58 million and $65 million.
Scales had previously said it expected earnings to be at the top of that range.
Scales singled out a record apple export crop from its Mr Apple division and increased volumes in its food ingredients operations, although all divisions are trading ahead of the yearearlier period, it said.
‘‘This is an excellent performance for the group, further building on the initiatives within each business unit,’’ managing director Andy Borland said in a statement.
‘‘All businesses and divisions have traded very positively during 2018, and provide a high level of confidence as the group looks to execute our refreshed growth strategy.’’
Scales is still waiting for Overseas Investment Office approval for the sale of its Polarcold cold storage unit. It also sold bulk liquids storage division Liqueo in the year.
The two sales combined are expected to provide $130 million of net cash.
The Christchurchbased company wants to use those funds to buy agribusinesses more closely aligned with the rest of its portfolio, and has indicated it is interested in businesses that are fully vertically integrated, exportfocused and can benefit from the firm’s relationships in China.
Scales yesterday said it was making inroads on a number of its growth plans and some might be finalised in the near term.
The directors said they hope to provide 2019 earnings guidance and provide an update on the Polarcold sale and growth plans at the annual earnings report, in February.
The shares last traded at $4.40 and have declined 8% so far this year, lagging behind a 5.6% gain on the S&P/NZX 50 index. — BusinessDesk