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

 


Satara faces loss after review finds double counting

Satara may post pretax loss after valuation review finds double counting

Feb. 4 (BusinessDesk) - Satara Cooperative Group, the Te Puke-based kiwifruit and avocado company, may post a full-year loss before tax after an asset revaluation review found it had double-counted its cool stores.

The company would reduce the value of land, buildings and plant by $5 million to $33.4 million if it takes all the adjustments in the 2012 year, it said in a statement today.

That would turn its pretax earnings to a loss of $2.1 million from a projected profit of $600,000, resulting in a $2.4 million reduction to its asset valuation reserve and reduce deferred tax liabilities by $500,000, it said.

The company’s shares last traded at 40 cents on the NZX and have shed a third of their value in the past two years. Chairman Hendrik Pieters said shareholders should hold off on trading the shares on the news because the company was separately in the final stages of talks over a material transaction that will be announced in the next few days.

Satara flagged the asset revaluation in its first-half results, having cut the value of assets the previous year in the wake of the devastation wreaked by Pseudomonas syringae pv. actinidiae (Psa) on the kiwifruit industry. The financial impact of the disease on the kiwifruit industry was estimated at between $310 and $410 million over the next five years by a Lincoln University study last year.

The company says that based on preliminary valuation advice, industry-wide and company specific factors would cut the value of its land and buildings by $2.3 million in the latest year. The effect of counting the value of “certain items of coolstore plant” in both land and buildings and plant and equipment in its accounts was to overstate their value in 2012 by $2.7 million, it said.

Satara said it will release more details of the adjustments with its full-year results.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news