PGC braced for big loss
Pyne Gould Corporation says it expects to post a loss of $141.1 million for the year to June due to restructuring costs and provisioning.
Pyne Gould Corporation says it expects to post a loss of $141.1 million for the year to June due to restructuring costs and provisioning.
The company said $114.2 million of the losses were made up from restructuring and the separation of Heartland New Zealand, which incorporates PGC’s Marac finance company.
A trading loss of $26.9 million was expected due in part to the loss of contribution from Heartland and provisions to the ex Marac property book and other investments of $26.1 million.
PGC initially held a 72.2% stake in Heartland before distributing those shares to its own shareholders.
The company has recently rebuilt a 6% stake through a placement and underwriting role to Heartland’s $58 million capital raising.
The ongoing business of Perpetual Group, Torchlight Investment Group and the property group made a profit of $3.2 million.
“Making any loss is unacceptable, even if explainable,” chairman Bryan Mogridge said in a statement.
More detail will be provided next week with the release of the audited financial statements for the year, he added.
The company has delayed its annual result due to disruptions caused by the Christchurch earthquake in February which collapsed PGC's head office.
PGC anticipated its NTA at June 30 will be $129 million, or 60c-a-share.
PGC shares were unchanged at 32c on the NZX following the announcement.
NBR staff
Fri, 09 Sep 2011
Fri, 09 Sep 2011
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PGC braced for big loss
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