Frankland prepares for bumper harvest

THE unwanted attention on the agribusiness sector in light of the Great Southern and Timbercorp collapses has not marred the resolve of one Western Australian company, which is looking to expand further into Asia.

Fresh from a $3.2 million capital raising and a decision to retain its olive groves, which were put on the market late last year, Frankland River Olive Company is on a good run despite its share price languishing at around four cents.

The company's share price was resilient when Timbercorp collapsed towards the end of April, but took a turn when Great Southern went into receivership earlier this month.

Managing director David Carr said the company is on track to profitability with production volumes up substantially and sales doubling for its Jingilli olive oil product.

He added that once Frankland can maintain profitability, he expects the company's share price to climb.

In its interim report for the December 2008 half, Frankland reported a loss of $2.5 million.

Non-executive director Paul Letari spent more than $1 million buying shares in the recent rights issue, boosting his shareholding to just more than 19 per cent.

Despite Mr Letari's splurge, Perth businessman Gordon Martin remains the company's largest shareholder through his company Chemco, which holds a 28.9 per cent interest. Chemco agreed to underwrite $3 million of the capital raising.

Frankland is currently preparing for harvest with this year's crop forecast to be the biggest to date.

Mr Carr said the company is focused on expanding its reach in Asia where it currently exports bulk oil, for itself and on behalf of other growers, to China, Malaysia and Japan.

The company is currently the country's largest bulk exporter to Europe.

He added there were no plans to merge with another company, with O'Connor-based Olea Australis selling its olive groves to Great Southern late last year for nearly $19 million.