NEWS ANALYSIS: Crookes targets high-return projects to offset sugar slump
CROOKES Brothers — a low-key agri-business specialist — is hoping that plans to plough significantly more capital into new projects will secure improved profit yields in the next few years.Crookes, which is more than 100 years old, has focused mainly on the sugar industry, but has in recent years broadened its basket of crops to include deciduous fruit, bananas and macadamia nuts.The company’s recently released annual report shows that plans to invest R500m in new projects over a five-year period to end March 2018 were linked to a targeted nominal internal rate of return (after tax) of more than 20% a year.Last year, Crookes raised R215m via a share issue. The proposed five-year capital expenditure is significant for a relatively small agribusiness player such as Crookes, representing more than half the company’s R900m market capitalisation on the JSE.Writing in the annual report, Crookes MD Guy Clarke said several high-return projects and acquisitions were being evaluated as part o...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.