Profit and capital raising for GrainCorp

Net profit after tax in the six months ending March 31 jumped from a loss of $6.5m in the same period last year while earnings before interest, taxation, depreciation and amortisation climbed to $82m from $32m, the company said.

Revenue in the first half increased to $858m from $806m a year ago, grain receivals rose to 8.8m tonnes from 4.6m tonnes and export grain handled surged to 1.9m tonnes from 500,000 tonnes.

GrainCorp managing director Mark Irwin described the result as a "significant turnaround" from the previous two years, which were affected by drought.

"Improved seasonal conditions in Queensland and Northern New South Wales through 2008 and into early 2009 boosted our grain receivals and allowed the grain export sector to bounce back," Mr Irwin said.

On May 13, GrainCorp said that full-year profit would likely be between $37m and $42m.

The company will not be paying an interim dividend and it will decide at the end of the financial year whether a full-year dividend will be paid to shareholders, chairman Don Taylor said.

Meanwhile, the company announced plans to raise capital to position it for growth.

GrainCorp will place $60m in shares at $6.25 apiece while investors will be able to grab up to $15,000 in shares through a share-purchase plan.

In other developments, the company also announced the resignation of long-serving director David Groves from the board.

GrainCorp shares closed at $7.40 on Friday.