In a sign of confidence, though, directors are paying a final dividend heavily exceeding the earnings a share.
Lower confidence in some sectors means reduced farm spending in what is the most operationally challenging time for the business in recent years, chairman Rodger Findlay said.
Doubts caused by Mycoplasma bovis hit the livestock and rural supplies businesses, with dairy activity lower.
A tightening in the credit environment also influenced farm spending.
The after-tax profit for the year-ended June 30 was $4 million, down from $9m a year earlier.
Operating Ebitda, the group’s favoured measure of performance, was $24.4m, down from $34.5m a year earlier. The latest figure is slightly lower than guidance because of on-farm conditions, chief executive Stephen Guerin said.
Revenues were about steady at $809m.
The profit on the seeds division sale was $134m.
PGW booked a $6.4m loss on the division before sale, leaving a net gain on that part of the business of $127.8m. That left a bottom line profit of $131.8m.
PGW paid out $234m in a return of capital to shareholders following the sale and has now decided to pay a final dividend of 7.5c a share on the reduced number of shares following the one-for-10 consolidation. Ordinary earnings a share were 5c.
Assuming a more normal trading year, continuing strong commodity prices, increased confidence in managing M bovis and gains from corporate restructuring for the smaller business the directors had confidence to pay the final fully tax-imputed dividend, Findlay said.
The retail and water business had slightly lower Ebitda than the record figure a year earlier but Fruitfed traded strongly in a positive horticulture environment. Orchard and vineyard developments are expected to boost revenues.
The agency business was also back on the prior year because of market conditions. Livestock earnings were lower at the half-year and did not recover to the extent expected despite strong sheep and beef prices and demand. Some sheep and beef finishing was delayed.
In the dairy sector M bovis reduced herd settlements and dairy beef trading.
Findlay said the group will provide current year earnings guidance at the annual meeting in October, once the busy spring trading period has started.
PGW paid down its borrowings after the sale of the seeds business. At the June 30 balance date it had total assets of $565.5m and an equity ratio of 70%.
In July the company set-up new core banking facilities of $50m, plus a working capital facility of $70m, both on competitive terms, Guerin said.
