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

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news