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- Release Date: 28/02/14 15:02
- Summary: HALFYR: ALF: Allied Farmers Half Year Result to 31 December 2013
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ALF
28/02/2014 13:02
HALFYR
REL: 1302 HRS Allied Farmers Limited
HALFYR: ALF: Allied Farmers Half Year Result to 31 December 2013
28 February 2014
ALLIED FARMERS HALF YEAR RESULT TO 31 DECEMBER 2013
Allied Farmers Ltd (ALF) has reported an unaudited operating loss of $0.47m
for the six months to December 2013 (1HY:2012 $5.5m loss).
The six months ending 31 December 2013 has seen an improved result from the
Livestock Division and considerable progress with the Group either satisfying
or making achievable arrangements in relation to significant outstanding
obligations.
The Livestock Division reported a profit before tax of $0.37m for the 6
months. This was $1.2m better than the same period last year when a pre-tax
loss of $0.8m was reported. NZ Farmers Livestock Limited (67% owned by Allied
Farmers), continues to perform ahead of expectations, with overall livestock
sales 18% ahead of the same period last year and particularly good increases
in the Taranaki, King Country and Manawatu regions. Traditionally the
Livestock Division makes most of its earnings in the second six months and
again based on the level of forward herd sale contracts this year we would
expect the second half profits for Rural to exceed last year.
The Asset Management Services division made a profit of $0.17m for the period
(last year $3.8m loss). This was largely related to the reversal of some
overprovisioning of ex Hanover assets. The value of these assets left to
realise is now less than $0.2m.
During the six months pleasing progress was made in relation to some
significant obligations. An arrangement was made with IRD which will see
their debt repaid over two years. The ALF owned saleyards were sold to
subsidiary company NZ Farmers Livestock Limited and the proceeds used to
repay secured borrowings to Crown Asset Management Ltd (CAML), with the
liability now at $2.7m, down from $7.0m last year. In December 2013 a
conditional agreement was reached with Speirs Group to settle a $2m liability
for shares and a deferred payment, together worth $1.2m. This agreement went
unconditional and settled in January 2014 and as a result $0.9m will be
written back to profit in the second half result.
For the next six months ALF will continue to explore options with CAML to
repay the secured debt whether this is by way of further asset sales,
replacement debt or raising further capital. The focus for the Livestock
division will be to continue to grow NZ Farmers Livestock's business
activities.
Garry Bluett
Chairman
End CA:00247649 For:ALF Type:HALFYR Time:2014-02-28 13:02:47
