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

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news