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- Release Date: 29/02/12 17:42
- Summary: HALFYR: ALF: ALLIED FARMERS 2012 INTERIM RESULT
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ALF
29/02/2012 15:42
HALFYR
REL: 1542 HRS Allied Farmers Limited
HALFYR: ALF: ALLIED FARMERS 2012 INTERIM RESULT
ALLIED FARMERS 2012 INTERIM RESULT
Allied Farmers Ltd (ALF) has reported a half year unaudited loss of $9.0m for
the
six months to December 2011 ($20.6m loss December 2010). The loss reflects
the
restructuring of the rural division as the merchandise stores were closed or
sold
and the livestock division transferred to a new subsidiary partially owned by
rural
division staff. This joint venture subsidiary, NZ Farmers Livestock Ltd, was
formed
on 1 December and the current result includes one month of the new operation.
Allied Farmers Investments Ltd (a wholly owned subsidiary of ALF holding the
ex
Hanover and United Finance assets) continued to make losses as several assets
where large second mortgage loans were held by that company were sold by the
first mortgagee resulting in further significant write downs..
The rural division made a loss of $0.7m before Impairment of Goodwill (last
year
$1.9m loss). This loss must be considered in the context of the seasonality
of
earnings particularly from the livestock business. The livestock business was
ahead of last year and is on track for a good second half with strong dairy
herd
forward sales. The Bobby calves division had an improved result on lower
volumes. The real estate division reported a profit compared to a loss for
the same
period last year.
Allied Farmers Investments made a loss of $4.2m (last year $13.6m loss) and
included impairments of ex Hanover advances of $3.6m. Corporate costs of $3m
were significantly below last year's $4.0m.
Group borrowings reduced from $37m at June 2011 to $19m at Dec 2011. This
was as a result of continued repayment of debt from asset sales and the
conversion of the Capital Notes to equity in November 2011. This reduction of
debt will further reduce interest expense as the full impact is felt in the
coming six
months. ALF continues to rely on the ongoing support from its secured lenders
and creditors and is confident that this will continue. ALF anticipates
further debt
reduction before the end of this financial year.
The outlook for the rural division for the next six months is promising. NZ
Farmers
Livestock has been well received by both the farming community and staff and
we
look forward to growing that business. Allied Farmers Investments still has
some
loans that may prove difficult to collect. However, the larger part of the
asset base
is now the property assets, including 81 sections at Jacks Point in
Queenstown for
which there is steady enquiry.
End CA:00220188 For:ALF Type:HALFYR Time:2012-02-29 15:42:55
