The news has not improved for struggling investment company Allied Farmers, which yesterday reported a $77.6 million unaudited after-tax loss for the year to June 30, more than double that of a year earlier.
In the year to June 30, 2009, it reported a $34.2 million loss after tax, but accounting for $21.4 million of impaired goodwill costs relating to subsidiary Allied Nationwide Finance and impairment losses of $20.2 million relating to former Hanover Finance and United Finance assets, severely weakened the result of the year under review.
All its divisions reported net losses after tax: rural services $757,000, financial services $19.3 million, asset management $21.7 million and corporate $35.8 million.
The result was made worse by the inclusion at balance date of a $19.3 million after-tax loss from Allied Nationwide Finance, put in receivership on August 20.
The subsequent appointment of a receiver after balance date meant the writing-off of $21.4 million of goodwill.
Turnover for the year under review was $106 million, down significantly on the $111 million reported for the previous year, with lower contributions from rural services and discontinued operations.
Managing director Rob Alloway said the pre-purchase fair value assessment of Hanover and United assets was disappointing, given the independent expert assessors used assumptions subsequently found to be unrealistic.
Allied's recovery of loans and property has realised $9.5 million in the last half of the year under review, and yesterday it announced the sale of its Five Mile stage 2 development in Queenstown for an undisclosed price and the recovery of a further $6.2 million from MAC Reeves.
The board acknowledged Allied was too heavily geared for the economic climate and would focus on reducing debt.
