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

 


Allied Farmers narrows first-half loss

Allied Farmers narrows first-half loss as livestock unit turns profitable

By Paul McBeth

Feb 28 (BusinessDesk) - Allied Farmers, which is slowly rebuilding from a disastrous takeover of the Hanover and United Finance loan books, narrowed its first-half loss as its livestock unit returned to profit, and is mulling ways to pay debt owing to Crown Asset Management.

The Hawera-based company made a loss of $468,000 in the six months ended Dec 31 from a loss of $2.47 million a year earlier, it said in a statement. Its livestock unit, which generated almost all of its revenue, made a profit of $315,000 from a loss of $798,000 a year earlier, on largely flat sales of $8.71 million.

“Traditionally the livestock division makes most of its earnings in the second six months and again based on the level of forward herd sale contracts this year we would expect the second half profits for rural to exceed last year,” chairman Garry Bluett said. “The focus for the livestock division will be to continue to grow NZ Farmers Livestock’s business activities.”

In December the company reached a conditional deal with Spiers Group to settle a $2 million liability for shares and a deferred payment worth $1.2 million, and will write back $900,000 to profit in the second half result.

Allied Farmers avoided liquidation last year, raising $600,000 in a bond issue, almost half of which was bought by interests associated with chairman Bluett. Asset sales in the past year have helped reduce its debt with Crown Asset Management to $2.65 million as at Dec. 31, and the company is exploring its options on completely repaying the debt. The government entity took over the debt because of a related party loan between Allied Farmers and its failed finance unit, Allied Nationwide Finance.

“For the next six months ALF will continue to explore options with CAML to repay the secured debt whether this is by way of further asset sales, replacement debt or raising further capital,” Bluett said.

Allied Farmers is trying to rebuild after the disastrous acquisition of financial assets from Hanover and United Finance for $394 million in 2009. Its asset management unit, which houses the ex-Hanover and United Finance loans, held assets worth $183,000 and liabilities of $1.09 million as at Dec 31.

The shares were unchanged at 4.2 cents today, valuing the company at $4.43 million.

(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