Allied Farmers remained in survival mode after yesterday confirming an audited $77.6 million loss for the year ending June, Forsyth Barr broker Tony Conroy said.
The loss was larger than the $34.2 million loss reported in the previous corresponding period (pcp).
"There is no value attributed to the finance arm.
"Rural services is a regional player and is not profitable at this stage, so again little value can be attributed to that part of the business.
"The Hanover book therefore is where there is value, But there is so much uncertainty surrounding the value, it would be brave to try and put a value on it as there is so much information risk around the book," he said.
The audited accounts showed that most of the loss was attributed to a $21.4 million goodwill write-off against Allied Nationwide Finance and further impairment of $20.2 million against the former Hanover and United Finance assets acquired by Allied Farmers in December last year.
Allied Farmers Rural reported an operating loss of $757,000 stemming from the tough trading conditions compared with a profit of more than $2 million in the pcp.
Retiring Allied Farmers managing director, Rob Alloway said the audited result crystallised the financial position for the company following the receivership of the finance subsidiary and removed much of the uncertainty around the business.
"The sales of non-core assets have reduced our consolidated debt by $22 million since June 30 and we expect to have fully repaid our term debt to Westpac by the end of next week.
"There has been minimal erosion in value, indicating that we are getting the best out of those assets," he said.
Mr Conroy said Westpac had been aggressive in getting its funds repaid and it appeared pressure from Westpac had been applied to gain the sale of the Hanover loan referred to earlier this week.
It was likely there would be further impairments on the Hanover book.
"Given the information risk, the departure of Rob Alloway later in the year and the difficulty in valuing the Hanover book, Allied remains very much a wait and see proposition.
"It is also difficult to see who may step into Alloway's role. It could be like trying to find a coach for the Otago rugby team."
