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

 

Brewing: Lion To Buy Cult Upper Hutt Brewer Panhead

Lion - Beer, Spirits and Wine (NZ), New Zealand's biggest beer maker, has agreed to buy Panhead Custom Ales from the family of founder Mike Neilson, its second such purchase of a popular craft brewer after the acquisition of Dunedin-based Emerson's Brewing Co in 2012. More>>

ALSO:

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news