Renouf $401M loss reflects big crash

Press, 24 September 1988, Page 32

Renouf $401M loss reflects big crash

PA Wellington Renouf Corp yesterday reported a $NZ401,226,000 loss for the year ended June 30, reflecting the impact of the sharemarket crash on investments. The directors described the year as “traumatic” but said Renouf had been left with shareholders' funds of more than $lOO million. The company’s asset values had been stabilised, they added. This included the writ-

ing down to nil of Renouf’s shareholding in Impala Pacific, of Hong Kong, and a reversal of previously reported equity accounted earnings. These contributed a loss of $151,220,000 to the annual result. The result was audited, with an auditors’ tag that the accounts had been prepared on a going concern basis which assumed the company would continue to enjoy the support of its lenders. In addition, the auditors

said audited accounts were not available for Impala Pacific and Benequity Properties and they had not been able to value a view on the value of Renouf’s investment in these companies or whether outstanding debts were likely to be recovered. Renouf’s loss compared with a profit of $152,201,000 for the 15 months ended June 30, 1987. Revenue for the latest year was $399,688,000,

down from $574,968,000. The company had an operating deficit of $387,243,000 ($148,371,000 profit). Tax was a $1,492,000 credit ($2,275,000 deduction). x Equity accounted earnings were a deficit of $16,565,000 ($17,464,000 contribution). The bottomline loss of $401,226,000 also reflected minority interests which were a deduction of $1,090,000 ($11,359,000 contribution).