Tandou $6m profit for 6 months to June

Tandou $6m profit for 6 months to June

• $6 million profit before tax from continuing operations for 6 months compared with $2.92 million for 12 months to December 2010

• Water segment EBIT up 48% to $5.884 million

• Tandou Farm successfully harvested 4,028 hectare cotton crop, with 61% increase to 6,500 hectares cotton planned for 2012. Tandou Farm segment EBIT $2.067 million

• Tandou 6-month report based on a change of accounting period from 31 December to 30 June financial year reporting

Water investor and agribusiness Tandou Limited (ASX:TAN) has reported $6 million profit before tax for the six months to June 2011 substantially beating $2.92 million profit before tax for the year to December 2010. This six month period represents a transitional financial year period as the company has moved from calendar year to financial year reporting.

In addition to the successful result from the 2011 cotton crop and water business the Company continues to build its water investment platform demonstrating sustained earnings while further expanding its water assets.

Water Business segment EBIT increased 48% to $5.884 million (12 months to 31 December 2010: $3.97 million). At 30 June Tandou had total water entitlement holdings of 31,757 megalitres (2010: 37,867 megalitres) with a directors’ valuation of $30.208 million. In addition Tandou had secured commitments for a further 13,610 megalitres, increasing total entitlement holdings to 45,367 megalitres with a value of $51.882 million, representing more than 36 cents per share.

During the period Tandou raised $23.1 million to further invest in water entitlements based on strategic and value buy opportunities. The Company believes that with increasing agricultural, environmental and urban demand the value and yield from water entitlements will continue to grow.

“Tandou is a profitable company that has invested in substantial water assets and its large scale cropping operations are again being used to utilised to increase earnings and investor value,” said Mr Guy Kingwill, Tandou Chief Executive Officer.

“The outlook for water allocation pricing for the coming season remains favourable for irrigated cropping and Tandou has further increased its productive area with the rotational planting of 2,400 hectare winter cereal crops.”

Menindee Lakes have continued to receive inflows through the winter ensuring water availability for the 2012 and 2013 crops.

Enquiries:

Guy Kingwill
CEO/Managing Director
03 5018 6500


Rudi Michelson
Monsoon Communications
03 9620 3333

TANDOU LIMITED
ABN 81 001 014 562