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


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news