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


CORRECT: PGC FY profit shrinks 99% from restated accounts

CORRECT: Pyne Gould annual profit shrinks 99% from restated 2014 result

(Fixes status of Bath Street dispute in 7th graph)

By Jonathan Underhill

Aug. 31 (BusinessDesk) - Pyne Gould Corp, which restated its 2014 accounts to remove an anticipated gain on the sale of Perpetual Trust, said 2015 profit shrank by 99 percent as interest income fell, expenses jumped and the asset management firm didn't get a repeat of the previous year's one-time gain.

Net profit was 38,000 British pounds in the 12 months ended June 30, from a profit of 6.46 million pounds a year earlier, the Gurnsey-based company said in a statement. Net operating income fell 62 percent to 3.4 million pounds, including a 4 percent decline in management fees to 2.2 million pounds.

Pyne Gould (PGC) is controlled by managing director George Kerr, an NBR 2015 Rich Lister with wealth estimated at $80 million. He was left in control of a listed company in 2012 when he failed to take the company private in a full takeover attempt.

At the time of his offer he had warned that the company wouldn't contemplate paying dividends as it sold assets and that retail investors could face a bumpy road as he took PGC in directions that wouldn't necessarily generate quick profits. Today, PGC is focused on investments in Australia and the UK through its Torchlight Group, which "manages and co-­invests in proprietary funds focused on non-­traditional investment opportunities," according to its website.

The company was fined and censured by the NZ Markets Disciplinary Tribunal in January over the delayed release of its 2014 annual report, which had been tagged by auditor PwC, over the firm's inability to obtain sufficient information about PGC's investment in Torchlight Group and Torchlight Fund.

In February, the Financial Markets Authority said it was looking into the company's 2014 accounts over the gain it booked on Perpetual Trust, while in May, Bath Street Capital rejected a $22 million demand from PGC over the Perpetual Trust acquisition, saying no price was fixed in the deal and the agreement was for PGC to be paid if the shares of a subsidiary company were listed on the stock market.

No further has been taken since the demand was rejected, while the 2015 accounts show a one-time gain of 11.3 million pounds on the sale of discontinued operations in 2014.

PGC's total comprehensive loss for the 2015 was 8.3 million pounds, compared to a year-earlier income of 2.9 million pounds, and included a charge of about 8 million pounds against foreign currency reserves, more than twice the year-earlier adjustment.

"In 2011, we said that it would take a decade or more for PGC to fully convert its collection of difficult assets into a strong and sustainable business," Kerr said in a statement.

"We said that the job of converting bad book assets to cash and then into a strong core business was technically demanding, inherently unpopular and results would inevitably be lumpy," he said. "We were correct – the time frame is long, the job requires highly specific skills in arcane areas, we continue to ignore popularity contests and the results are lumpy. However, and despite this, we have always been highly confident our strategy of exit of non-core assets and building a long term business from distressed assets was compelling."

Total assets stood at 64.8 million pounds as at June 30, down from 74 million pounds a year earlier. Of that, some 17 million pounds related to advances to associates and finance receivables, listed among current assets, while non-current assets including 9.1 million pounds of available for sale financial assets, 2.3 million pounds of investment property, and 24.8 million of investment in associates.

PGC shares last traded at 29 cents on the NZX, valuing the company at $60.2 million, and have declined 36 percent in the past 12 months.


© Scoop Media

Business Headlines | Sci-Tech Headlines


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>


Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>


Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>