Cushing’s Rural Equities narrows loss

Cushing’s Rural Equities narrows loss on higher milk pay-out, property sale

By Paul McBeth

Sept. 23 (BusinessDesk) – Rural Equities Ltd., the farming group controlled by Selwyn Cushing’s H&G Ltd., narrowed its 2010 loss as it benefited from rising milk prices and sold a High Country property.

The Hastings-based company made a loss of $4.5 million in the 12 months ended June 30, compared to a loss of $34.2 million a year earlier, it said in a statement lodged on the Unlisted exchange today.

The group’s six dairy farms lifted milk production and improved its margins with an increased pay-out from Fonterra Cooperative Group, and rental income on leased farm properties rose 3%. It booked a $6.4 million gain from the sale of South Island property Fox’s Peak in January.

Rural Equities merged with New Zealand Rural Property Trust in December, taking control of 30 rural properties, livestock and other farm assets, and a small forest. It had previously held 63% of the trust.

Cushing said the board was confident about the company’s long-term prospects, though farm profitability was likely to remain tight until confidence returned to the global economy.

Rural Equities paid a fully imputed special dividend of 5.5 cents a share during the year.

The stock, which trades on the Unlisted exchange, last traded at $2.94 on Sept. 17.

(BusinessDesk)

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