Allied Farmers posts 1H profit, warns on 2H dairy sales 27 Feb 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- Government Widens Drought Assistance News
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
Allied Farmers posts 1H profit, says uncertain dairy sales may weigh on 2H
By Suze Metherell
Feb. 27 (BusinessDesk) - Allied Farmers, which is rebuilding after taking over the failed Hanover and United Finance loan books, turned to a profit in the first-half as its livestock division exceeded expectations but flagged second half sales may be weaker because of uncertainty around the dairy payout.
The Hawera-based company posted a profit of $907,000 in the six months ended Dec. 31, from a loss of $468,000 a year earlier, it said in statement. Sales rose 11 percent to $10.1 million.
Its livestock division boosted profit before tax 97 percent to $750,000 in the period, while overall livestock sales were 14 percent ahead of the same period last year. Allied flagged that second half sales, which are normally stronger than first, may decline as dairy farmers wait to see what they will be paid for milk production.
Last year the global dairy price more than halved from a record high, but have since begun to show signs of recovery, throwing up the possibility of milk collectors and exporters raising the payout to farmers to reflect the recovery in prices. Yesterday, Fonterra Cooperative Group, the world's largest dairy exporter, held its forecast payout at $4.70 per kilogram of milk solids, down from a record $8.40/kgMS last season.
"Traditionally the livestock division makes most of its earnings in the second six months and depending on the level of herd sale contracts this year we would expect the second half profits for the livestock division to exceed the first half," Allied said. "Due to the uncertainty caused by the reduced dairy payout, forward herd sales are lower than at the same time last year but we would expect herd sale activity to increase over the next few months."
Last September, Allied cut a deal with Crown Asset Management Ltd to repay $2 million by selling down its stake in subsidiary company NZ Farmers Livestock and issuing a three-year bond. It avoided liquidation in 2013, raising $600,000 in a bond issue, almost half of which was bought by interests associated with chairman Garry Bluett, and as a series of asset sales helped reduce its debt with Crown Asset Management.
"For the next six months Allied has some obligations to further repay secured debt and will focus on options to repay this," the company said. "The focus for the livestock division will be to continue to grow NZ Farmers Livestock’s business activities and the company is currently exploring several options."
The asset management unit, which housed the former Hanover assets, reported a profit of $120,000 in the six month period, down from $170,000 a year earlier largely due to the write-back of a loan that was repaid, Allied said. The value of the assets to be realised is less than $100,000.
Shares of Allied rose 4.5 percent to 7 cents valuing the company at $7.5 million.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more