Buderim Ginger to re-focus on Agri-business, tackling debt

Buderim Ginger has announced that it will sell part of its land holdings on Queensland’s Sunshine Coast to re-focus on its core agribusiness.

The decision comes after Buderim Ginger completed a strategic review of the group.

Buderim chairman Stephen Maitland said the Group’s Board in conjunction with advisers, Ernst & Young, have determined a course of action after a comprehensive study of its Australian and overseas operations.

“The Board has decided that the company must reduce debt while repositioning itself as a listed agribusiness with core operations in ginger and macadamias,” Maitland said.

“In the short term, the company intends to sell some of its under-utilised and non-profit-generating land at our Yandina site. A significant portion of this land has never been productively used and has been identified by the board for sale as smaller industrial lots, subject to relevant local government approvals.”

He also said the group in the medium term would seek to sell its now much-improved bakery business to re-focus on its core operations.

Maitland added that in the 12 months to 30 June, 2010, total bank debt has been reduced from $30 million to less than $28 million.

“The asset sales identified together with scheduled principal repayments will further significantly reduce this debt in the coming year and strengthen the group’s balance sheet,” he said.





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