A minor profit warning:

Allied farmers issues profit warning
12 June 2006

Allied Farmers has warned its forecast half-year results are likely to be $150,000 lower than the previous year.


The Hawera-based company said it now did not expect to meet its predicted full year profit. It was anticipating a profit of $2.15 million before tax, compared to $3.47m to June 30 last year.

Chairman John Loughlin said the lower profit reflected a more subdued real estate market and a "necessary but unscheduled restructuring" of its real estate division.

Allied Pine was also taking longer than expected to turn around although the lower New Zealand dollar was helping.

Other factors included increased provisioning for doubtful debts in the merchandise and pine businesses.

However, the company's livestock, wool and finance divisions had all performed well.

Allied Farmers also advised that its takeover offer for Prime Finance Limited has now been accepted by more than 98 per cent of Prime shareholders, and was now unconditional.

The addition of Prime is expected to add $1.2 million before tax to Allied's bottomline.