PGG Wrightson’s appointment of highly respected corporate leader John Anderson as chairman marks an important milestone in its journey to restore confidence in the beleagured rural services company. Anderson’s arrival coincides with a broader changing of the guard at Wrightson, with former chair Craig Norgate and his investment partner Baird McConnon departing. Current chair Keith Smith, who remains a director, says Wrightson has aimed to “provide confidence to all stakeholders” and restore its focus of being ‘leaders in the field.’

Wrightson returned to profit in the first half, a period notable for the absence of writedowns, though earnings of $4.1m were well below the track of earlier years. The company faced the full force of the rural downturn, with dairy, beef, sheep and arable farmers cutting back on spending, depressed conditions for viticulture and inclement weather disrupting spraying programmes for orchardists. Better conditions for livestock had the effect of prompting farmers to hold on to stock for weight gains. Seeds and grains proved more resilient, reflecting strong export demand and sales of spring brassicas.

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The company suffered through what was an annus horribilus, heralded by the failure of its merger with Silver Fern Farms and subsequent penalty payments. The $216.9m in gross proceeds from its capital raising, bringing in Agria Corp as a cornerstone shareholder, has shielded Wrightson from the wrath of its banks, slashing debt and providing a buffer for future adverse market conditions. Outgoing chair Smith paints a mixed picture for 2010, noting a general uplift in farmer and grower sentiment, offset by tighter lending criteria and uncertainty about interest rates and the kiwi dollar.

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