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- Summary: FLLYR: ALF: Annual Results Unaudited2012
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ALF
30/08/2012 08:30
FLLYR
REL: 0830 HRS Allied Farmers Limited
FLLYR: ALF: Annual Results Unaudited2012
[email protected]
29 August 2012
ALLIED FARMERS LIMITED UNAUDITED 2012 ANNUAL RESULT
It has been a further year of restructuring and reducing costs for Allied
Farmers Limited. Significant milestones have included:
The loss making rural merchandise stores were sold or closed;
The livestock business was successfully restructured in to a subsidiary, NZ
Farmers Livestock Ltd, with approximately 30% sold off to livestock agents
and staff; and
Continued realisation of property assets.
For the year the Group reported an unaudited loss of $14.1m (last year
$40.9m). A significant part of this loss, $10.3m (last year $34.1m), largely
relates to the further impairment of assets acquired from Hanover and United
Finance. Also included were $0.7m costs related to the disposal of the rural
merchandise business.
The Rural Services Division, which includes the Livestock and Real Estate
operations, had a profitable post-restructuring second half result generating
earnings before interest and amortisation of $1m. This result is well ahead
of budget and is particularly encouraging, as significant recruitment of
livestock agents has been necessary to replace those who left early in the
period, and it has taken time to rebuild this business. It is expected that
this business will continue to grow as the new team fully develops and we
continue to improve and expand services to clients.
The Asset Management Services Division, charged with the recovery of the ex
Hanover and United Finance assets, reported a loss of $7.8m for the year. The
value of the New Zealand based assets, which is now largely comprised of
residential sections at Jacks Point in Queenstown, has stabilised. However,
offshore assets in Fiji and Australia which are in the process of being
realised have incurred significant additional writedowns. The total book
value of assets still to be recovered is now at $22m, and as a large
proportion of this is in property, an orderly sell down could take several
more years for this value to be realised.
Total Group interest costs reduced from $8.0m to $4.2m as secured loans
continued to be repaid. Parent company operating expenses have reduced from
$5.0m last year to $2.3m this year.
The listed company now has shareholders funds of $9.1m The Group accounts
still reflect negative equity as the consolidated result does not attribute
the full value of the investment in the NZ Farmers Livestock subsidiary.
The focus for the coming year will be to continue to build the Rural Services
Division. The Directors are encouraged by the progress of this division which
has performed above expectations. NZ Farmers Livestock Ltd has purchased a
further 25% and has negotiated to buy the remaining 25% of the King Country
Livestock business that it did not own. The Group still has significant
liabilities to repay and the Asset Management Services Division will need to
continue to sell down assets in order to meet these obligations.
The Directors acknowledge the considerable support and loyalty of all of the
staff of Allied Farmers and its subsidiaries. There is still considerable
work to be undertaken but meaningful steps have been made to the Company and
the positive impact of those steps is now starting to show through to the
Company's results.
End CA:00226654 For:ALF Type:FLLYR Time:2012-08-30 08:30:33
