Pyne Gould Corp's annual loss to hit NZ$141.1 mln driven by restructuring as Marac was spun-off into Heartland NZ

Pyne Gould Corp's annual loss to hit NZ$141.1 mln driven by restructuring as Marac was spun-off into Heartland NZ

Pyne Gould Corporation (PGC) says it'll post an annual loss of NZ$141.1 million after restructuring and spinning off Marac Finance into Heartland New Zealand cost NZ$114.2 million and the group recorded a trading loss of NZ$26.9 million.

The NZ$141.1 million loss for the year to June 30 compares to a NZ$22 million net profit after tax in the previous year.

PGC, which now consists of Perpetual Group, Torchlight Investment Group and the Property Group, says the NZ$114.2 million "accounting non-cash" loss stemming from the creating of building society and wannabe bank Heartland came from the market value adjustment for PGC's share of Heartland upon the distribution of NZ$52.9 million via the profit and loss account, plus a NZ$20.4 million write-down of PGC's equity.  See PGC's full statement here.

The losses also include NZ$9.3 million worth of provisions for a management agreement with Heartland whereby PGC manages former Marac toxic property loans.

PGC's finance company Marac merged with CBS Canterbury and Southern Cross Building Society in January to create Heartland.

Meanwhile, the trading losses include NZ$26.1 million of provisions for ex-Marac property and other loans.

PGC said Heartland contributed a profit of NZ$12.5 million and its ongoing businesses - Perpetual Group, Torchlight Investment Group and the Property Group - profit of NZ$3.2 million after absorbing the costs of rebuilding the business.

"Making any loss is unacceptable even if explainable," PGC's chairman Bryan Mogridge said. " More detail will be provided next week with the release of the audited financial statements for the (June) year."

The expected net tangible asset value of PGC as of June 30 is NZ$129 million, or 60 cents per share, Mogridge said. That's almost twice PGC's current 32c share price.

 

 

 

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