tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 7th, 8:03AM

Investments

rss
Latest Headlines

SCF says impairments lead to first-half loss

South Canterbury Finance said it will post a first-half loss on writedowns of impaired assets.

Wednesday, February 3rd 2010, 4:40PM

The company is due to post its results for the six months ended December 31 in the next few weeks. Further writedowns were intended not only to give a fair view of the current value of those assets, but would also "ensure as far as possible that the company's results for future periods are not distorted," chief executive Sandy Maier said in a statement.

"The results for the first six months of the year will not be representative of the historical achievements of the company's business nor the strength of its future performance," Maier said.  SCF made its first loss since the Great Depression of the 1930's, last year, and has gone through a difficult period of capital restructuring, asset writedowns and has changed senior managers and auditors. 

On the positive side, Maier said that investors pushed an average of $1.7 million a day into SCF products during January, a traditionally quiet period, and the company is retaining existing investors at rates that indicate "renewed confidence."

Also dragging down the first half result will be one-off costs from fees triggered by the early redemption penalties on SCF's US$100 million private placement credit facility, which was unwound after SCF breached banking covenants during last year's turmoil. 

A further negative impact will be the discovery during auditing that SCF's investment in South Island Farm Holdings preference shares should have been recorded at fair value rather than cost in the June 30 accounts.  However, this impact is not expected to be significant and should unwind as the shares were redeemed on July 1. 

The company also expects to make further announcements shortly on further fundraising to strengthen its balance sheet.  Investment bank Forsyth Barr has been mandated for this task.

« Reserve Bank considers liquidity controls for non-bank deposit takersReserve Bank fuels deposit war: PwC »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • Advisors must take note of supervisor guidelines on AML/CFT
    “When I read this, the following memory plucked a note. Venue was a US financial planning conference maybe 30 years ago. Speaker...”
    1 day ago by Murray Weatherston
  • Partners kills its matrix
    “@Backstage, thanks. I agree there is no relationship to CoFI, though, from a service perspective, I have two other providers...”
    3 days ago by JPHale
  • Partners kills its matrix
    “Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which...”
    4 days ago by Amused
  • Partners kills its matrix
    “Insurance companies should stick to their lane. They are not advisers and even those that employ advisers should not be crossing...”
    4 days ago by Tash
  • [GRTV] The nitty gritty of Smart’s ETFs
    “Advisors should consider all gateways into investment markets including cheaply priced ETFs to provide access to low priced...”
    4 days ago by Pragmatic
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com