Grocorp loss

Press, 24 December 1986, Page 10

Grocorp loss

Grocorp Pacific, Ltd, has reported a loss of $725,000 (including extraordinary items $438,000) in the six months ended October 31. It is the second interim result for the current period (from October 1, 1985, to April 30 next year). Comparative figures for the previous period are not given as the company has changed its balance date from September 30 to April 30, the directors said. They also said that the loss for the six months was in line with forecast as the company’s orchards are still in the development stage. The principal revenue items are returns from the company’s kiwifruit orchard at Kerikeri and from management fees. “Owing to the seasonal nature of the company’s activities, the greater part of the reported loss represents operating expenses, which will be largely offset by sto-

nefruit and berryfruit income in the six-months period to April 30, they said. “Orchard income is now being supplemented by revenue from orchard management contracts at Kerikeri and Te Puke, on behalf of financial institutions. “Extraordinary items of $438,000 consist principally of foreign exchange losses and issue expenses. However, strengthening of the New Zealand dollar since October 31 has significantly reduced foreign exchange losses. The company has moved to eliminate its exposure to foreign exchange movements by bringing its funding lines on shore.” The directors emphasise that it is their policy not to revalue developing orchards. Orchard values are therefore stated in historical cost terms and do not reflect their true value as they come closer to fruitful production.