Two LIC directors not seeking re-election
Two long-standing LIC farmer-elected directors are stepping down later this year.
LIC chairman, Murray King, says the high milk price combined with relatively stable weather patterns saw farmers increase their investment in a range of range of information management tools which enable them to analyse and manage animal and farm performance more easily and effectively than ever before.
"Our farmers manage more animals more efficiently than ever before. As their cooperative, our job is to provide them with a range of solutions which enable them to run highly efficient profitable businesses – from the family farm with 200 cows to the large corporate with tens of thousands."
King says technology is developing at an unprecedented rate and farmers are faced with a bewildering array of technologies to manage a varied set of challenges.
"Our challenge is to deliver a high level of technology and data analysis in a suite of integrated products which are intuitive and easy to use. New Zealand dairy farmers have some of the highest usage rates of technology in the world and we have embarked on a multi-year, multi-million dollar rebuild of our databases and IT infrastructure to future-proof our ability to deliver innovative products and services which will enable Kiwi farmers to maintain their standing as the best in the world."
Summary, half year result
Revenue for the six months to November 2013 was $135.2 million compared to $131.7 million for the same period in 2012. Due to the database and technology platform rebuild, net profit after tax (profit attributable to shareholders) decreased by 10.25% from $30 million in 2012 to $26.9 million. Biological assets were not revalued.
LIC's business, particularly artificial breeding (AB), is highly seasonal. Half year results incorporate the majority of the AB revenues, but not a similar proportion of total costs, and are not therefore indicative of the second half, nor the full year, result.
The balance sheet remains strong with total equity of $219.6 million compared to $214.6 million in November 2012.
Total operating cash flow for the six months was a stronger net cash inflow of $1.2 million which compares to $5.6 million net cash outflow in the previous year reflecting strong collections and farmer cash flows year to date.
