PGG Wrightson has kept to its own forecast, and announced a $23.3m net profit for the year to June.

The result is a huge turnaround on last year’s $66m loss, which included the one-off costs of the failed merger with Silver Fern Farms and writedowns on its Farming Systems Uruguay business.

Reported group sales were down slightly to $1.15b from $1.28b in 2009, and Managing Director Tim Miles says liquidity will be tight for a while yet.

“A lot of people are feeling the pinch, and there are a group of people out there who are in a good space financially, but for them to invest they need to have confidence.

"When you look at the movement that’s happening, the exchange rate and other factors, people are being very cautious right now.”

PGG has also retired more than $200m in bank debt over the past year, after taking on Chinese company Agria as a cornerstone shareholder.

BOND ISSUE EXTENDED

PGG Wrightson Finance has had a $100m NZDX-listed bond issue extension resoundingly approved by holders.

Nearly 90% of bondholders gave the go-ahead to extend the maturity of the issue by a year at a special meeting in Christchurch.

It was the second meeting of bondholders to seek the extension after attendance at the first wasn’t high enough.

PGW Finance CEO Mark Darrow says a formal announcement to extend the date will be made next week.

“We’ve said that it’s our intention to roll the bonds, as it has been for two years since we first issued them.

"The formality will be the official announcement, and we’re making that on Monday.”

The secured bonds will now mature in October next year. The coupon rate will remain at 8.25%.