The Securities Commission has let New Zealand Farming Systems Uruguay’s infamous “fudge this” remark slide by, but the company still acknowledged the negative impact of the slip-up at its annual shareholders meeting today.

The comment was inadvertently left in the company’s financial results released to the NZX in late August, with NZFSU playing down the seriousness of the matter and blaming the inclusion on an administrative error.

At today’s meeting, chairman Keith Smith said the comment was an error of judgement which the company regretted, but added that the board felt it had been “disproportionately treated by certain media”.

“The board has investigated the matter and is satisfied that it is an isolated incident that will not occur again with appropriate checks and controls now in place. Having said that we certainly regret the negative impact the matter caused.”

The regulatory arm of NZX referred the matter to the Securities Commission in September, but Mr Smith said the commission had confirmed it intended to take no further action, having completed a review.

Fudging aside, Mr Smith said NZFSU remained positive about prospects for the business in the medium-term, despite the short-term impact of falling dairy prices, the international credit crunch and a one in 30 year drought hard on the heels of previously difficult climatic conditions.

”We believe a number of factors including the performance of pasture under irrigation, the continuing development of the local Uruguayan farming talent and the recent increases in international dairy prices give us good reason to be confident.”

The company still has a long way to go, recording an annual operating loss of $US15.6 million, although revenue almost doubled and the company was successful in securing $US16 million of long-term bank funding during the year.

It has predicted in will reach the break-even point in two years.

Mr Smith said the company estimated that a further $US50 to $US60 million will be needed on top of the first bond issue of $US30 million to complete development of the existing 35,000 hectares.

He said half of this money would from a further bond issue in the second half of the year, with the remainder from outright sale or sale and leaseback of certain farms, or other funding arrangements.