Shares in agricutural business Elders Limited (ASX: ELD) climbed 8% to $5.60 today after the group reported its financial results for the year ending 30 September 2017. Below is a summary of the results with comparisons to the prior corresponding period.
- Statutory net profit of $116m, up from $64.4m in prior year
- Adjusted profit of $57.m, up $16.5m from prior corresponding year
- Sales revenues of $1.6 billion
- Fully franked final dividend of 7.5 cents per share
- Special final dividend of 7.5 cents per share
- Underlying return on capital of 26.8%
- Underlying earnings per share of 50.7 cents
Elders is proof that occasionally turnaround businesses do turn to produce big returns for investors prepared to go against the grain and buy into struggling companies.
As a result of its success in cutting costs and radically restructuring the business the stock is up 48% over the past year. It has also enjoyed some tailwinds with cattle and sheep prices rebounding, alongside some relatively benign climatic conditions across the agricultural sector. Management is now plotting further growth out to 2020.
