Agricola reports loss

Press, 2 December 1989, Page 34

Agricola reports loss

Agricola Resources’ accounts have been tagged by the auditors because it is dependent on continuing financial support from its majority shareholder, DFC New Zealand, and financiers. The agricultural and horticultural group has reported a total loss of $7.3 million ($4.9M previously) in the year ended June 30. The net trading loss was down 50.1 per cent on the previous corresponding period, and Agricola’s chairman, Mr P. A. Verry, told the Stock Exchange that this continued the trend towards profitability. The Government’s placing of DFC New Zealand under statutory management in October had created a number of difficulties for Agricola, it said in a statement. DFC was the company’s major shareholder with a 75 per cent stake. It was also Agricola’s main financier and the company was still negotiating the repayment and refi-

nancing of its debts. Losses were caused mainly be most of the company’s projects still being at the development stage. “The losses on discontinuing operations and livestock writedowns were lower than in previous years. A writedown in recent investments of S4.IM made up

the bulk of the S.9M of extraordinary items. The company had treated its investment that way to reduce their book value to actual net asset value. Agricola had a contingent liability of SI.IM at balance date related to a dividend due to preference shareholders.

Agricola Resources audited result for year ended June 30 1989 ($000) 1988 ($000) Turnover 13,511 4968 Pre-tax loss (2485) (4894) Minority int. (79) (1) Group net loss (2406) (4893) Extraordinaries 4850 - Total loss (7256) (4893)