Origin enjoys rise in pre-tax profit

Agri-services group Origin Enterprises has reported an 8.4 per cent increase in pre-tax profit to €76.2 million for the 12 months to the end of July.

The company also recorded a €24.3 million reduction in group debt which stood at €67.8 million in July.

This highlighted the “the continued strong cash generative nature of the business,” Origin said. The company’s annual revenue increased by 6.6 per cent to €1.34 billion.

There was also a 5.6 per cent increase in agri-services operating profit to €69.7 million, reflecting a boost in integrated on-farm agronomy services

Chief executive Tom O'Mahony said: “Origin delivered a strong financial and operational performance in 2012 recording an 11 per cent increase in underlying adjusted earnings per share combined with excellent cash generation.”

“Sales of agronomy services and strategic inputs during the key second half period were excellent reflecting the benefit of an extended service offering and favourable investment momentum at farm level.”

“The impact of unprecedented and challenging weather conditions in the year highlights the volatile nature of the planning environment for primary producers.”

“This underscores the strategic role of agronomic innovation to meet the challenge of sustainable intensification and ever increasing production risk.”

Mr O'Mahony said the board is recommending a 36 per cent increase in the full year dividend to 15 cent per ordinary share reflecting our confidence in the future performance of the group and the strong cash generative nature of the businesses.