Agribusiness Elders hopes its troubled past as a “complex and highly geared  conglomerate” is behind it as it clears the decks for a future which looks much the same as it did when it began corporate life 175 years ago.

The company announced today it had successfully completed a $10.2 million placement and released an offer to current and shareholders to raise a further $57 million.

The move coincides with new banking arrangements that allow it to retire senior debt and free up working capital.

Elders Chief Executive Officer Mark Allison said the future looked bright.

“We welcome to our share register a range of local and offshore institutions,” he said.

“Elders is no longer the complex and highly geared conglomerate it once was and the recapitalisation and new banking facilities will help management optimize future performance.

“Elders balance sheet now provides us the funding flexibility to deliver our capital-light business model and will allow us to take advantage of the tremendous opportunities in the Australian and international agricultural sector.

“The equity raising and new banking facilities will have a very significant positive impact on Elders.”

Allison said the new arrangements, part of the company’s eight point restructure plan, allow the business to concentrate on its core strength- that of a pure play agribusiness.

“Unlike the past few years, all future cash flows can now be directed to improving and growing our rural services business.

“It will also be a tremendous boost to staff and customer confidence.

“We will no longer be distracted by a conglomerate asset structure, asset sales or debt repayments.

“Our strengthened financial position enables us to continue our turnaround and work towards our strategic target of achieving $60 million EBIT and 20 per cent return on capital by 2017.”

In its statement to the stock exchange today the company said its FY14 underlying EBIT outlook “is in a range of $23 million to $28 million, reflecting a turnaround of up to $77 million on the FY13 results”.

“The underlying EBIT improvement in FY14 highlights the benefits of changes already underway at Elders. We look forward to delivering on the earnings potential of this 175 year old business in the years ahead.”

The company’s corporate origins date back to 1839 when Alexander Elder, aged 24, set sail from the Port of Kirkcaldy in the 89-ton schooner ‘Minerva’ to extend the family’s merchant and shipping business.

His cargo included 60 barrels of tar, nine casks of biscuits, agricultural tools and nails, seeds, clothing and linen, gin powder, 6,000 roofing slates, one hogshead of whisky, one hogshead of brandy and a puncheon of Jamaican rum.

On arrival in South Australia he put up a sign – “A.L Elders, General and commission agent” – and started a business that’s been a constant feature of the corporate landscape.

It’s ventured into metals, forestry, car making, beer and even had a crack at bidding for BHP.

In 2014, after going close to hitting the wall under a mountain of debt during the global financial crisis, Elders looks like it might have a rosy future.