Otaki-based Mowbray Collectables has reported an operating loss of $229,000 in the year to March 31 after writing down the carrying value of its Australian business by $330,000.The loss compared to a loss of $238,000 in the same period last year.Mowbray s
Otaki-based Mowbray Collectables has reported an operating loss of $229,000 in the year to March 31 after writing down the carrying value of its Australian business by $330,000.
The loss compared to a loss of $238,000 in the same period last year.
Mowbray said its core businesses in New Zealand exceeded expectations but a re-branding of Stanley Gibbons Australia to Mowbrays Australia had not been successful. Auction sales returns in the Australian business were well under budget and the worst for seven years.
"The directors are presently negotiating the sale of the business following our June auction. We have written down the carrying value of our investment in Mowbrays Australia by $330,000," the company said.
In November, the group's 20 percent owned Australian associate, FEAL, acquired Sotheby's Australia. Significant restructuring costs resulted and the company had experienced difficulty in finalising its share of the result from this business. The Mowbray result may need to be adjusted when these matters were resolved but Sotheby's Australia was trading well this year.
Directors declare a dividend of 1.5 cents per share payable before the annual meeting on August 16.
