Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Yellow Pages still awash in red ink, writes off goodwill

Yellow Pages still awash in red ink, writes off remaining goodwill

By Paul McBeth

Nov. 27 (BusinessDesk) - Yellow Pages, the directory company whose lenders seized control in 2010, was tipped into the red in the latest financial year by writedowns that wiped out remaining goodwill.

Holding company NZ Directories Holdings narrowed its net loss to $78 million in the 12 months ended June 30, from $353 million in a five-month trading period a year earlier, according to financial statements lodged with the Companies Office.

A $112.9 million impairment charge on the value of its brand, goodwill and customer relationships unwound its trading profit of $64.3 million on revenue of $209.7 million. The company had made a trading loss of $3.9 million on sales of $111.4 million in the shortened 2011 period.

Yellow Pages booked a $55.4 million charge on its goodwill, adding to the $329.3 million impairment it took in 2011, completely wiping out that intangible asset. The directory company wrote down its brand by $45.8 million, valuing that intangible at $212.2 million, while customer relationships wore a $12.1 million impairment charge.

Notes in the financial statements characterise goodwill as "the excess of the cost of an acquisition over the fair value of the group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition."

In 2010, Yellow Pages' lenders took control after its private equity owners saddled it with too much debt after buying the business from Telecom three years earlier for $2.24 billion in a leveraged buy-out. The company was forced to book a $1.6 billion charge to its goodwill and brand name in a restructuring agreement to hand it over to the banks that valued the company at $750 million.

The financial statements were tagged by auditor PwC, which gave an 'emphasis of matter' on the company's ability to continue as a going concern relying on its future profitability, securing sufficient working capital to meet its operational needs, and being able to service its debt.

The directors were satisfied the company could continue as a going concern "based on the substantial commonality between lenders and ultimate equity shareholders" and that it will be able to meet its interest and principal debt repayments based on its two-year forecasts.

"The group's trading operations remain profitable, with the two-year forecast and strategic plan supporting the continued profitability of the trading group," the company said.

Yellow Pages paid $39.3 million in finance costs, and had $461.9 million in interest bearing liabilities as at June 30. In the 2011 and 2012 years it complied with its financial covenant, which relates to earnings, before interest, tax, depreciation and amortisation.

With accumulated losses of $430.9 million, Yellow Pages was in negative equity of $180.9 million as at June 30. The company's gearing ratio, representing its debt as a proportion of total capital, was 174.6 percent, up from 130.6 percent a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news