AACo loses US$25 million in H1

Beef cattle group Australian Agricultural Co (AACo) has posted a first half loss of A$30.261 million (US$25.3 million), more than 10 times worse than the A$2.164 million loss recorded in the first half of 2008.

The first half result was negatively impacted by severe drought and flooding, as well as delays in cattle sales due to poor prices and difficult conditions on most of the company's properties, said AACo.

Chairman Stephen Lonie said the second half outlook consists of better business conditions such as steady cattle prices, and an improvement in financial performance.

AACo's operating costs fell A$8.3 million in the first half, and that it is on target for A$20 million reduction for the calendar year.

AACo said it does not intend to initiate any form of equity raising in the near term to repay debt, but plans to refinance existing bank facilities with a new three-year facility.

This would enable the company to pursue other valuable opportunities for its business, AACo said.