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Mike Knowles



Seeka reveals impact of Italian Psa

Company confirms impact of last year's Psa outbreak in Italy, but reveals better-than-expected profits for April-December 2010

Seeka reveals impact of Italian Psa

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New Zealand kiwifruit packer Seeka Kiwifruit Industries has revealed it cannot rule out any further financial impact from the recent Psa outbreak in Italy, which adversely affected its earnings and the value of its asset holdings during the period April-December 2010.

According to a financial statement relating to the nine months to 31 December 2010, Seeka took a NZ$1m (€544,000) impairment charge from its New Gold orchards joint venture, which it operates with Italian group Salvi, after some of the production involved was hit by the Psa bacteria last year.

It also reported a NZ$282,000 (€153,500) decline in the "fair value" of its vine assets and a NZ$4.3m (€2.3m) decline in its crop assets.

However, the vine infection is said to have only affected 3 per cent of its 2010 supply.

"The possible impact of Psa has been considered in relation to the valuation of biological assets and the recoverability of short term lease prepayments," the company said in its statement.

"As at the date of the release of these accounts, no reliable estimate of the future financial impact, if any, from the Psa outbreak can be made."

Reporting on its overall financial performance for the nine months to 31 December 2010, however, the company revealed it had made a pre-tax profit of NZ$12.7m (€6.9m) during the period, despite facing a major challenge from the recent outbreak.

The company's earnings for the period exceeded an earlier forecast which had suggested the figure would be in the range NZ$11.5m-NZ$12.5m (€6.3m-€6.8m).

Net profit at the group also increased in April-December, to NZ$6.4m (€3.5m) from NZ$6.2m (€3.4m) during the year-earlier period.

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