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Allied Farmers shares jump on update

NZN 27/07/2016 Paul McBeth

Allied Farmers shares jumped 16 per cent after the rural services firm gave a rosier view on annual earnings due to a better than expected performance from its livestock division.

The Hawera-based company said pre-tax profit was between $1.4m-$1.6m in the year ended June 30, up from $1.11m a year earlier.

The final result will be released next month. The shares climbed 0.7 of a cent to 5 cents, valuing the company at $8.3 million.

"The performance of the livestock division has exceeded expectations and this is expected to materially and positively affect the full year result," chairman Garry Bluett said.

Allied Farmers has been focusing on its livestock division, having largely wound down the residual assets from its acquisition of the Hanover and United Finance loan books in 2009.

The company said it has paid the second tranche of a scheduled acquisition of Hawke's Bay-based Redshaw Livestock, taking its stake to 34 per cent. A final instalment will be made next July, which will give Allied Farmers' NZ Farmers Livestock unit a 52 per cent share of the business.

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