Pacific Dairies is still not a dairy farmer, still doesn’t have that funding
Health & Biotech
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Pacific Dairy is repeating promises in its full-year report that will be all too familiar to long-suffering investors.
The company (ASX:PDF) has been trying to turn into a dairy farmer for years and has been suspended since 2016 as it prepared to move away from meat.
After posting a 50 per cent drop in revenue to $57,000 — all from interest on its limited cash — and a loss that’s 38 per cent worse than last year, it still reckons there’s life in the old dog yet.
The “prime focus of the company” is still finding someone who wants to finance its bid to buy five dairy farms in the fertile Riverina — a plan put in motion in 2016.
It is blaming “negative press articles”, the Murray Goulburn “debacle” hurting investor sentiment, and lower farm gate milk prices for its failure to find that money so far.
In the 2018 financial report, Pacific Dairy said “thankfully the underlying value of our project has held up and we are hopeful to complete the debt funding during the first half of the 2018/2019 year”.
It is almost word for word what the company said in its only market update in November last year — except then it was predicting to have that debt funding wrapped up by the end of March.
According to the 2018 financial report, chairman Paul Duckett is being paid $150,000 for his efforts and directors Ray Taylor and Trevor Kelly $33,000 — all in company stock, however.
Mr Duckett is also on a three-day a week contract with the company worth $120,000 a year.
The company made a $943,000 loss last year.
Director and consultancy fees made up 66 per cent of the company’s costs.