Business Description:
Ridley Corporation Limited (RIC) manufactures and markets animal nutrition solutions and solar salt in Australia. RIC has two main businesses, namely, Ridley AgriProducts and Cheetham Salt.

Strategy Analysis:
RIC's strategy is to improve the performance of core businesses by reducing costs and improving efficiencies to increase barriers to entry. Another initiative is the sale or closure of a number of mills in Ridley AgriProducts' northern region and a program to release the value in some of Cheetham Salt's surplus land holdings. Events and factors such as BSE, foot and mouth, droughts and hurricanes highlight the exogenous risks continually facing RIC. Growth has been pursued by acquisitions. Additionally, RIC is progressing in several opportunities to divest and redevelop its surplus landholdings in the country to realize unrecognised value from its significant property portfolio. These landholdings provide Ridley with the opportunity to generate substantial returns over and above those generated from its normal operations, either through property sales or by engaging in long term property development programs. Ridley Corp reported NPAT of $29.32m for the year ended 30 June 2011. Revenue from ordinary activities were $723.7m, down 0.6% from last year. Basic and Diluted EPS were 9.5 cents compared to 9.5 cents last year. Net operating cash flow was $35.47m compared to $39.43m last year. The final dividend declared was 3.75 cents, taking the full year dividend to 7.5 cents compared with 7 cents last year.