AAC RAISES $56.3 MILLION

Written on the 11 May 2011

AAC RAISES $56.3 MILLION

AUSTRALIAN Agricultural Company (AAC) has raised $56.3 million via equity placement to pursue further growth.

The company will provide an offer to shareholders of up to $15,000 of shares through a Share Purchase Plan (SPP) to be capped at $30 million.

Proceeds from the equity raising will be used to provide financial flexibility to pursue growth while maintaining target - gearing levels of less than 40 per cent.

The company also expects to deliver EBITDA of between $60 and $65 million for 2011 with earnings tipped to be weighted primarily towards the second half.

Following the termination of a major food services contract and weak performance, the Chefs Partner component of the business will cease operations. As a result, a $4.2 million provision has been made in 2011F, primarily comprising an impairment of goodwill and other business finalisation costs.

CEO David Farley says the company completed the first year of a three year strategic plan in 2010 focused on transforming itself from a pastoral company into a vertically integrated beef producer and value added processor.

“Progress on strategic initiatives has continued in 2011 with the announcement of the acquisition of the Tipperary herd and agistment arrangements in March 2011,” he says.

“As part of the strategic plan, the company continues to review various vertical integration options including a proposed meat processing facility in the Northern Territory.”

AAC has a market cap of around $430 million. The company came in at No. 22 on Brisbane Business News’ 2011 Top 50 Public Companies list.

AAC shares are trading at $1.55 with no change.


Latest News

VITA GROUP POSTS STEADY RESULTS DESPITE ROUGH YEAR

IT'S no secret Vita Group (ASX: VTG) has had a testing year, however the company has still managed to deliver ...

KOGAN BREAKS FORECASTS IN ITS FIRST YEAR OF PUBLICLY LISTED TRADE

RAISING the bar high in its first year as a publicly listed company, Kogan.com (ASX: KGN) has smashed its forecast...

CAMPLIFY MOTORS INTO THE UK MARKET

CARAVAN hire and RV sharing community Camplify has made its move in the European market, establishing its first op...

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter