Three agricultural players in the managed investment scheme (MIS) sector have announced low sales returns for the 2010 financial year.
Willmott Forrests has entered into a trading halt after announcing that applications received for sales of its Premium Forrest Blend 2010 Project were just $19.65 million (exclusive of GST).
In a statement the company said that the implications of the lower sales results required proper consideration in light of its current position and outlook for the 2011 financial year.
Sandalwood grower and processor TFS Corporation has announced its MIS sales to retail investors totalled about 306 hectares for the 2010 financial year - down 54 per cent on 2009.
"Given the dramatic decline in overall MIS sales in Australia in the 2010 financial year, we believe this outcome vindicates our strategy to move away from reliance on MIS and reflects the strong long-term market outlook for Indian sandalwood products," TFS executive chairman Frank Wilson said.
However TFS Corporation has maintained its earnings guidance for the 2010 financial year, after lifting total sales by six per cent.
TFS said on Friday that it had sold a total of 1,088 hectares of Indian sandalwood.
Rural service company Elders Forestry has recorded total sales of $1.6 million from its forestry MIS projects for the 2010 financial year.
Last month Elders downgraded earnings guidance and expected a full year loss because of low prices for farm supplies and subdued real estate activity.
Underlying profit for the 12 months to September 30 was expected to be a loss of between $8 million and $14 million.
At the time Elders said that it planned to scale back its forestry managed investment structure activities with a focus on operating existing projects.
