Pyne Gould posts 1H loss; last result before Marac split

Pyne Gould posts first-half loss in last result before Marac spinoff

Feb. 28 (BusinessDesk) – Pyne Gould Corp. reported a first-half loss in its last result before the spin-off of Marac Finance, after the firm wrote-down the value of its stake in PGG Wrightson, recognised costs for the restructuring and increased its charge for impairments.

The net loss was $37.2 million, or 5 cents a share, in the six months ended Dec. 31, from a year-earlier profit of $10.1 million, or 3 cents, the company said in a statement today. Operating income fell to $43 million from $49.5 million.

PGC spun off Marac into Building Society Holdings, a publicly traded finance company formed from the merger with CBS Canterbury and Southern Cross Building Society. Building Society shares fell 2.5% to 78 cents today while PGC was unchanged at 31 cents.

The first-half loss includes a previously flagged $30.3 million non-cash writedown on the sale of its 18.3% holding in Wrightson, which it is selling into Agria’s partial takeover offer. Agria is offering 60 cents a share for control of Wrightson, while PGC had the shares in its books at 82 cents.

Other costs included $5.1 million of legal and professional fees for PGC’s merger and restructuring, and a $4.4 million increase in impairments for property.

“The six-month period under review marks a significant transition for the group,” the company said. “While the transition has been painful, particularly from an accounting point of view, PGC is now well positioned to return substantial value to shareholders and grow the remaining business.”

PGC is distributing the shares in Building Society direct to its shareholders.

With the exit of Marac, PGC comprises its Perpetual wealth management arm, Torchlight, which offers funds management for high net worth individuals and Property Group, whose assets include the under-performing loans transferred from Marac before the restructuring.

(BusinessDesk)

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