Webster Limited today announced a $4.05 million lift in pre?tax profit from continuing operations to $5.2 million, and an after tax profit of $4 million. In announcing the profit result, the Company also announces a capital raising to fund further growth in core areas and to provide a platform for increased earnings in coming years.
The largest component of the Webster business is in the
growing, managing, processing and marketing of walnuts.
Webster manages 2,100 hectares of walnut orchards, 1,670
hectares of which are based in the Riverina region of NSW.
Almost 90% of orchards are company owned. Of the Riverina
orchards, grower investors have an interest in the crop from
950 hectares; Webster receives management, harvesting and
processing fees, and contracts on an annual basis to market
this crop.
Additionally, Webster is Australia's largest exporter of
onions from its facility near Devonport in Tasmania.
The Company is pleased to announce a capital raising
comprising a 15% placement, of ordinary shares, to a company
associated with Mr Chris Corrigan at a price of 50 cents per
share(Placement) and a renounceable rights issue (on a 1 for
4 basis), at the same price (Rights Issue). If fully
subscribed the capital raisings will total $20.4 million. Mr
Corrigan, previously a director, has been invited to re?join
the board.
The record date for the Rights Issue is expected to be 12
September 2012. Full details of the terms and conditions of
the Rights Issue will be contained in the offer document
which is expected to be lodged with ASX on 3 September 2012
and sent to Shareholders by 18 September 2012.
Broker, CCZ Equities Limited, has been appointed sponsoring
broker. Webster anticipates a sound appetite for the Rights
Issue and has chosen to not have the issue underwritten. A
shortfall facility is part of the Rights Issue, enabling
shareholders to apply for additional shares (should they be
available), provided that no shareholder becomes entitled to
more than
19.9% of the Company.
The funds will be used to:
? finance a walnut cracking plant to value add
the increasing production coming from Webster's owned
and managed orchards,
? enable a 50% expansion of the company's
walnut orchard estate, in a staged manner, over the next 4 to
5 years,
? retain a conservative balance sheet, and
? position the company to potentially take advantage of opportunities, should they arise, in related areas or where the company has particular expertise.
Webster Chairman Rod Roberts commented that:
"Directors are generally pleased with the result in what has
been a challenging year. Webster derives a majority of its
income in export markets and faces the twin challenges of a relatively high Australian cost base and a high Australian dollar.
With the loss of international shipping services, exporters from Tasmania must from now tranship product through
Melbourne. This additional short shipping leg has a similar cost to shipping to East Asian ports.
Assets and walnut projects, acquired last year, have performed to expectation and the company expects to further benefit in coming years from scale economies with both the new walnut cracking line and the foreshadowed, staged, increase in its walnut orchard estate.
Barriers to entry to the walnut industry are high, with propagating varietal types, horticultural practices and processing skills all quite sophisticated. Global demand for walnuts, associated with well documented health benefits, coupled with Australia being a counter seasonal Southern Hemisphere supplier of fresh product, give directors confidence about the future growth and profitability of the walnut business."
Webster ended the financial year with minimal net debt of approximately $4.5 million, against total assets approaching $99 million. With the announced capital raisings, Webster is positioned to implement strategies to develop its operations and take advantage of opportunities which may arise.
Important Dates:
Lodgement Date | 3 September 2012 |
Despatch of notice containing information required by Appendix 3B to Shareholders | 5 September 2012 |
Ex Date and rights trading begins | 6 September 2012 |
Record Date | 12 September 2012 |
Offer Document sent to Shareholders and offer opens | By 18 September 2012 |
Rights trading ends | 25 September 2012 |
Closing Date | 3 October 2012 |
Allotment Date | 11 October 2012 |
Despatch Date | 11 October 2012 |
Expected commencement of normal trading in new shares on ASX | 12 October 2012 |
For further information, please contact Managing Director, Leigh Titmus, (03) 6427?5000
distributed by |