At its annual general meeting in Adelaide today, Elders delivered to its shareholders its huge improvement from $3m profit last year to a $38.3m statutory profit in the 12 months to 30 September 2015.

It also squashed its $34.1m term debt to zero and in September returned to the S&P/ASX 300 index

“…[O]ver the past 18 months there has been an obvious shift in mindset and culture within the business, and within the communities in which we operate, and we are confident that we are yet another step closer in creating value for all stakeholders,” Allison said.

“Last year I labelled 2014 as a year of survival for Elders. This year, however, was a year of stabilisation and growth.”

The company’s underlying profit was up $23.5 million on last year, to $32.6 million for the 2015 financial year.

Net underlying finance costs fell by $5.7 million with average net debt reducing during the year.

The revived approach also saw 200 lapsed clients return to Elders for livestock and wool agency services.

Increased market opportunities came from a new online livestock auctions, a livestock financing facility and new live export markets and rebranded meat production lines for an international market.

Elders CEO Mark Allison

Allison said the result had been largely achieved through increased retail earnings, strong livestock performance, increased feed and processing efficiencies and interest cost savings.

Retail had risen by $3.7 million on last year, put down to improved winter crop demand and other initiatives including price book management and consolidating its supplier.

Agency services were up $16.3 million, pushed by an increase in strong livestock prices and increase cattle and wool volumes.

The Killara feedlot recorded a further $3.1 million improvement.

Livestock agencies and short-haul live export had a 21.9 per cent return on capital, up 13.6 per cent on last year.

“After seven successive years of debt reduction, I am pleased to confirm that this financial year saw Elders reach a level of zero term debt,” Allison told shareholders in the annual report.

“We are now in a strong position to direct our cash flow back into Eight Point Plan initiatives – and ultimately reinvigorate and strengthen the business to grow earnings and returns.”

Allison said the company planned to continue assessing capital management opportunities and “act on those which are in the best interests of Elders and our shareholders”.

“This was a key milestone in the Elders turnaround story which provided us with a platform to focus on value generation for our stakeholders.”