Announcement
MKTUPDTE: SCL: Market Update
08:30am
SCL
05/12/2018 08:30
MKTUPDTE
PRICE SENSITIVE
REL: 0830 HRS Scales Corporation Limited
MKTUPDTE: SCL: Market Update
5 December 2018
SCALES CORPORATION DECLARES INCREASED INTERIM DIVIDEND AND UPDATES 2018
GUIDANCE
The directors of Scales Corporation Limited (NZX:SCL) have declared a fully
imputed interim cash dividend for the 2018 financial year of 9.5 cents per
share, to be paid on 18 January 2019. The dividend amount is an increase on
the 2017 interim cash dividend of 9 cents per share which reflects both the
positive trading performance for the current year and the stronger balance
sheet position as a result of the recent Liqueo sale.
Directors have also indicated that EBITDA, for the twelve months to 31
December 2018, is likely to be at the top end, or slightly exceed, the
current guidance range of $58 million to $65 million. The directors note
that this guidance is based on a 'like for like' basis with FY17 and assumes
the inclusion of a full year's earnings from cold storage subsidiary
Polarcold.
Key 2018 highlights include:
o Conditional sale of Polarcold and the completed sale of bulk liquid
storage subsidiary, Liqueo. These initiatives form part of the previously
reported refreshed growth strategy.
o Positive results across the entire Group in 2018, with all divisions
trading ahead of 2017.
o A record export apple crop for Mr Apple, and improved in-market
pricing.
o Further increases in sales volumes in the Food Ingredients
operations.
Managing Director Andy Borland says "This is an excellent performance for the
Group, further building on the initiatives within each business unit. All
businesses and divisions have traded very positively during 2018, and provide
a high level of confidence as the Group looks to execute our refreshed growth
strategy. As always, we are grateful to the tireless efforts of the entire
Scales team."
Directors will not provide EBITDA guidance for 2019 at this time, due to two
key outstanding initiatives:
1. The sale of Polarcold remains conditional on OIO approval, simply
reflecting the long regulatory approval process. Under the Sale Agreement
this condition is currently required to be met by 9 February 2019;
2. In line with our growth strategy, Scales' continues to make positive
progress on a number of our initiatives, some of which may be agreed in the
near term.
Directors will provide an update at the announcement of the 2018 results in
February 2019, or earlier if possible.
About Scales Corporation
Scales Corporation is a diversified agribusiness group. It comprises three
operating divisions: Horticulture, Storage & Logistics and Food Ingredients.
The company's diverse spread of activities gives Scales broad exposure to New
Zealand's agribusiness sector. Scales Corporation was founded in 1897 as a
shipping business by George Herbert Scales. Today it employs more than 700
staff New Zealand wide. Find out more at www.scalescorporation.co.nz.
Contact
Andy Borland, Managing Director, Scales Corporation Limited, Mob: 021 975
999, email: andy.borland@scalescorporation.co.nz
End CA:00327873 For:SCL Type:MKTUPDTE Time:2018-12-05 08:30:38
Click here
to view related attachments.
