ELD +8.91%: the agricultural services company was out with 1H numbers for the 6 months to March, coming in 5-10% ahead of consensus and upgrading guidance to help shares trade to new long term highs. Revenue climbed 38% to $1.5b, and EBIT jumped 80% to $132.8m in a strong start to the year. Conditions were buoyant across the board with fertiliser and crop protection products seeing higher prices and strong demand as well as high livestock prices supporting earnings. Costs were also up however Elders was able to maintain margins. Cashflow was weak however this was attributed to increasing inventories which they expect to benefit from with a positive outlook for winter crops. With the outlook remaining positive, Elders upgraded guidance for EBIT growth of 30-40%, previously 20-30%.
MM is neutral to positive ELD
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