Lombard Group sank to a $21.8 million annual net loss after directors decided to write down its Lombard Finance and Investments Ltd business, which was placed in receivership in April.
Auditors KPMG had indicated that the financial statements for the year ended March 31 would have a qualified opinion, as opposed to the usual unqualified opinion, because they and Lombard directors had no access to the records of companies in receivership.
The unaudited report was prepared from management accounts held by the group at the date of receivership on April 10.
Directors decided to fully impair the balance sheet of Lombard Finance and its subsidiaries.
That resulted in a $20.5m impairment loss from the writedown of Lombard Group's $42m investment in Lombard Finance, including the total write-off of $40m of shares, and a $5.9m impairment of goodwill.
"Given the result, the group has been undertaking a restructuring with a view to restoring the profitability in the near term," said acting chairman David Wallace.
"The board and management remain committed to the business during this restructuring period."
Mr Wallace replaced former chairman National government minister Sir Douglas Graham.
Revenue from ordinary activities rose 9% to $33.7m, and profit after tax fell 22 % to $5m, excluding one-offs.
Net tangible assets per share fell to 0.008cps from 0.846cps.
No dividend would be paid.
Tasman Mortgages Group, which Lombard took control of in July 2007 after buying out Blue Chip's remaining stake, made a contribution of $153,000 profit.
Fair value of Tasman Mortgage's net assets fell from $46,000 in September 2007 to minus $109,000 at balance date.
In April, Lombard Group said its finance company had hit funding problems on its lending in the property market.
Lombard Finance was placed into receivership with $127 million of debenture stock and notes on behalf of about 4400 investors, and a loan book of about $137 million.
The receivership also applied to three other subsidiaries - Lombard Asset Finance Ltd, Lombard Property Holdings Ltd and Lombard Asset Finance No 2 Ltd.
Shares in Lombard closed steady at 15c on turnover of just 1850 shares. - NZPA
