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

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news