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- Release Date: 30/08/13 10:30
- Summary: FLLYR: ALF: Allied Farmers Limited unaudited 2013 Annual Result
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ALF
30/08/2013 08:30
FLLYR
REL: 0830 HRS Allied Farmers Limited
FLLYR: ALF: Allied Farmers Limited unaudited 2013 Annual Result
29 August 2013
ALLIED FARMERS LIMITED UNAUDITED 2013 ANNUAL RESULT
The 2013 financial year has been a year in which Allied Farmers Limited has
continued to focus on reducing debt, realising underperforming and non core
assets, and growing the livestock business.
Significant milestones worth highlighting have included:
o Significant reductions in the secured debt levels to the senior lender
o Continued realisation of property assets and sale of the Real Estate
business to management; and
o A profitable year for the Livestock business, with continued growth in the
business;
For the year the Group reported an unaudited loss of $4.4m (last year
$13.9m).
The Livestock Division, which comprises the operation of NZ Farmers Livestock
Ltd, owned 68% by Allied, traditionally has strongest sales in the autumn
and it had a profitable second half of $0.6m resulting in a full year result
of earnings before tax of $0.9m. This result reflects the strong loyalty of
clients and the work ethic of the management team and agents. 2013 saw
continuation of the efforts to rebuild this business with most regions
performing well and in particular good growth in the Waikato and Taranaki
regions. NZ Farmers Livestock online livestock listing service,
MyLivestock.co.nz, continues to be well supported. During the year the
company acquired the balance of King Country Livestock that it did not
already own with the vendors of that stake becoming shareholders in NZ
Farmers Livestock.
After careful consideration the Real Estate division was sold to management
during the year. This business has had fluctuating results over the years and
the Board was not confident it would continue to generate appropriate returns
to the parent in the short and medium term, and believe that management team
and agents were the best drivers of the future of that business.
The Asset Management Services Division, charged with the recovery of the ex
Hanover and United Finance assets, reported a loss of $2.9m for the year,
(2012 $7.8m) This reflects both realised losses and gains on disposal of
assets as well as further writedowns on assets still held. The NZ based
assets have now largely been sold, with a major sale during the year being
the disposal of all of the sections held at Jacks Point in Queenstown. This
allowed a meaningful repayment of the debt to the senior lender. The value of
assets still to be recovered is now under $1m and the bulk of this is
expected to be realised during the current year
Total Group interest costs reduced from $4.2m to $1.8m as secured loans
continued to be repaid. The balance of secured debt owed to the senior lender
was $5.1m at June 2013, down from $17m in June 2012.
The listed entity, Allied Farmers Ltd, now has shareholders funds of $2.4m.
During the year the parent company had writedowns of intercompany balances
and goodwill relating to subsidiaries of $6.2m. As in the last year's
accounts, the Group accounts still reflect negative equity as the
consolidated result does not attribute the full market value of the
investment in the NZ Farmers Livestock subsidiary and the saleyard properties
held.
The focus for the coming year will be to grow the Livestock business as well
as continuing to repay debt. Although liabilities have reduced significantly
there is still pressure to repay the secured debt. The Directors and
Management continue to monitor and consider all ways that it can earn funds
and/or realise assets to free cash to repay the remaining debt to the senior
lender and other creditors.
The Directors acknowledge the considerable support and loyalty of all of the
staff of Allied Farmers and its subsidiaries, and the support of its many
stakeholders. There is still considerable work to be undertaken but
meaningful steps have been made by the Company and the positive impact of
those steps is now starting to show through to the Company's results.
Garry Bluett
Chairman
End CA:00240418 For:ALF Type:FLLYR Time:2013-08-30 08:30:04
