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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news