FarmWorks makes positive start on ASX

Agribusiness FarmWorks Australia has started trading on the stock exchange and says it is looking to strengthen its position outside of its core market of Western Australia.

FarmWorks Merchandise Services Pty Ltd was acquired by the listed former information technology provider ETT in February after shareholders approved the acquisition and a change of company name to that of the target.

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

On Monday, the shares under the new FarmWorks name rose 21 cents, to close at 21.5 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.

"FarmWorks is well placed to capitalise on renewed confidence in the agribusiness sector in Australia," 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 4700 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.