Farm services provider RuralCo has enjoyed a cracking start to the year with widespread rainfall, higher soft commodity prices and newly acquired businesses such as The Farm Shop.
The group hasn't said much yet on how the floods would have a material impact on its 2011 earnings, but with its share price shooting up 10 per cent in a week it wouldn't be too unusual to expect Ruralco as a potential takeover target, according to The Australian Financial Review .
Its competitor Landmark has come under new ownership by Canadian group Agrium while Elders has been sitting waiting for suitors for some time. There has been hypothetical discussion that Ruralco could merge with Elders.
It is expected over time Ruralco will increase the proportion of company-owned stores compared with independent member businesses.
Its net profit after tax increased 16 per cent to $13 million in the full year to December. The company's gearing level has dropped from 33.8 per cent to 26.3 per cent.
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