Underlying earnings also took a beating,  the company says while the $51.4m it achieved for the full year was in line with guidance announced in May, it compares to $107.4m in the previous year.

Group revenue for the year was $704m, down eight per cent. No final dividend was declared.

Greg L’Estrange, chief executive of Gunns says, “Trading conditions have been extremely difficult in the company’s key markets throughout the 2010 financial year and has caused the depressed earnings for the reported period. The collapse of the MIS sector also impacted profits in the period.

“While market conditions have remained challenging the company has moved forward aggressively in implementing its strategic review announced with the half year results.”

L’Estrange also outlined that the company had initiated a number of transactions, including the sale of its Tamar Ridge Wines business, the sale of native forest land and the sale of the Gunns retail hardware business, in order to focus the business on its core operations.

He says, “This programme will continue in the 2011 year with the objective of substantially reducing group debt and lifting earnings.”

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