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

 

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news