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

 


Augusta Capital annual earnings fall 7%

Augusta Capital annual earnings fall 7%, gets waiver on debt covenant breach

May 9 (BusinessDesk) - Augusta Capital, which spent $15.4 million in cash and scrip on acquisitions, reported a 7 percent fall in annual earnings as tax assets reduced its bill a year earlier, and got a waiver by its bank after breaching its debt covenants to fund its recent purchases.

Distributable earnings, the firm’s favoured measure as it strips out property portfolio revaluations and one-off transactions, fell to $4.63 million in the 12 months ended March 31 from $4.99 million a year earlier, the Auckland-based company said in a statement. Net profit plunged 63 percent to $1.99 million due to a reduction in the value of the firm’s portfolio.

Augusta was granted a one-year waiver after breaching a loan-to-value ratio covenant by lender ASB Bank, and anticipates the $20.85 million sale of a property to a syndicate will reduce its borrowing ratio. As at March 31, the firm had borrowings of $57.9 million at a ratio of 46.6 percent to gross assets, up from $38 million at a ratio of 36.4 percent a year earlier.

In March, the company bought property investors KCL Property and Investment Property Titles for a combined $15.4 million in cash and scrip, giving it about 170 properties to manage, with some $1.2 billion in funds under management.

“While the result for the year reflects the consequence of a loss of a key tenant and the costs of the new business acquisition, the outlook for the company is positive and the focus for this coming year will be to successfully complete the new business integration and successfully lease the vacant space that has driven valuation reductions in 2014,” it said.

The board declared a final dividend of 1 cent per share, payable on May 23, taking the total return to 4 cents in the year.

The shares were unchanged at 81.5 cents, and have gained 7.2 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news