FarmWorks makes positive start on ASX

Agribusiness FarmWorks Australia started trading on the Australian Securities Exchange (ASX) on Monday, after it was acquired by former information technology provider ETT Ltd.

Shareholders in ETT approved the acquisition of FarmWorks Merchandise Services Pty Ltd in February and a change of company name to FarmWorks Australia Ltd.

ETT shares had been suspended from official quotation on the ASX since February 19, when they were at 0.5 cents.

At 1138 AEDT on Monday, the shares under the new FarmWorks name were up 25.5 cents, at 26 cents.

FarmWorks was established in 2001 and had revenues of $92 million and normalised earnings of $2.5 million in the 2009 financial year.

Its core activities include merchandise services, livestock, financial solutions and property.

The company is looking to strengthen its position outside of its core in Western Australia.

"FarmWorks is well placed to capitalise on renewed confidence in the agribusiness sector in Australia," recently-appointed chief executive David Connolly said.

"Recent heavy rainfall on the east coast has seen strong demand for our agricultural chemical products."

FarmWorks said on Monday that it would review its strategy to enable the company to gear itself for expansion.

"The review will devise optimal strategies, business plans and structural requirements for the company to broaden its footprint in Australia," FarmWorks said.

"The company will present to the market the revised company strategy by end of June 2010."

FarmWorks has a customer base of about 4,700 growers.

The company said it was strongest in WA and Queensland, and in the medium term it would be looking to expand and strengthen its position in the NSW, Qld and Northern Territory markets.