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- Release Date: 01/03/13 15:39
- Summary: HALFYR: ALF: ALLIED FARMERS HALF YEAR RESULT
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ALF
01/03/2013 13:39
HALFYR
REL: 1339 HRS Allied Farmers Limited
HALFYR: ALF: ALLIED FARMERS HALF YEAR RESULT
1 March 2013
ALLIED FARMERS HALF YEAR RESULT
Allied Farmers Ltd (ALF) has reported an unaudited operating loss of $5.5m
for the six months to December 2012 (1HY:2011 $9.0m loss).
The six months ending 31 December 2012 has seen significant progress made
with the Group continuing to sell non-core assets to retire the secured debt.
During the period total secured debt has reduced significantly from $23.0m to
$7.5m.
The Rural Division reported a result that was $0.7m better than the same
period last year with a loss of $0.8m (last year $1.5m loss). NZ Farmers
Livestock Limited (67% owned by Allied Farmers), continues to perform ahead
of expectations and the wholly owned Real Estate division continues to
perform profitably, although at a slightly lower level than last year.
Traditionally the Rural Services Division makes most of its earnings in the
second six months and again this year we would expect a profitable second
half for Rural.
The Asset Management Services division made a profit of $0.3m before
impairments for the period (last year $0.6m loss). However, the directors
have made further provisions for impairments of $4.1m for the ex Hanover
assets, including a $3.75 million write down of one asset, as indicated as
being likely in ALF's NZX announcement of 11 February 2013. With asset sales
focused on some of the more difficult assets to realize, the Board has
adopted a conservative approach in considering the holding value of these
assets.
Corporate and funding costs have reduced to $1.2m in the six months to
December 2012 compared to $3.0m for the prior period. Reducing corporate and
funding costs remains a focus. As part of this focus the Group is closing its
Auckland office, and looking at further reducing overheads and a number of
other initiatives. The significant reduction of interest bearing debt will
significantly reduce interest costs going forward.
The focus for the Group has been to continue to sell assets to reduce debt,
and for the six month period total secured debt has reduced by $15.5m.
Further reductions are expected in the next six months as the focus continues
to be on debt reduction and growing continuing business activities.
End CA:00233662 For:ALF Type:HALFYR Time:2013-03-01 13:39:02
