Speirs group says exit from finance was not easy
Speirs Group Ltd said it was not easy to exit the finance industry in a reasonably dignified manner."Simply, a business that was satisfactorily profitable for a long period of time - 40 years or so - suddenly and largely unexpectedly became 'the elep
Speirs Group Ltd said it was not easy to exit the finance industry in a reasonably dignified manner.
"Simply, a business that was satisfactorily profitable for a long period of time - 40 years or so - suddenly and largely unexpectedly became 'the elephant in the room', to use a colloquial phrase," chairman Nelson Speirs told shareholders at the annual meeting today.
Speirs Group thought it had successfully exited the finance business with the sale of Speirs Finance to Allied Farmers in 2008.
"Wrong again. Part of the consideration for the sale was the issue to Speirs Group of both shares in Allied Farmers and bonds in Allied Nationwide Finance - the Allied Farmers finance company subsidiary. With the subsequent downfall of Allied Nationwide Finance, Speirs has had to write-off a further $2.5 million this financial year as another 'post balance date event'."
The company has repositioned as a fresh food producer. It reported a loss after tax of $5.10 million in the year to June 30.
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