ALF - Allied Farmers Limited

[Lizard]

Liz - wonder what a ALF balance sheet will look like without the ANF part in it .... still sick as I say

I'm guessing $40m equity tops. Debt down to $70m ish? Maybe still a bit higher than that.

Looks like $31.0m equity - or $44.5m prior to losing ANF. Debt about $73m. They say NTA 2.2cps, but taking into account ANF, bonus shares and 90m issued 4 Aug (presumably not cancelled ), I'd say 1.37cps.

Been a good trade for a few this week on Monday's announcement I would think. But difficult to see much value at current price unless they've impaired assets well beyond realistic prices.

Can't see any signs that Hanover assets went to ANF, so that is good. Net assets recovered are now allowed for at $94.3m and total assets acquired were offset by $45.9m of loans, so presumably they've allowed for $140.2m of total assets. Less $9.4m they say they've recovered and maybe allow to have spent the $7.5m of cash - so should be able to find at least $123.4m of ex-Hanover assets still on the books? About equivalent to the amount in Property Inventory, Property Investments and Loans & Advances remaining in ALF, so probably okay?

[Silverlight]

Lizard were you using the pro-forma numbers?

Total L: 112m
Total A: 143m

NTA: 29.785m or 1.51 cps on current 1.9b shares. (Have not added in the bonus securities)

Major assets
Loans: 43.6m
Invt - Prop: 38m
Invest Prop: 41.9m

Are these 3 all from Hanover?

They lost 10m last year if you take out impairments, and the 5.9m cost of Hanover.

Too biggest expenses are Cost of Goods sold, and salaries, who actually rates there services business and stores going forward? Are they competitive against the like of PGW, Bunnings, Farmlands etc?

[mikew]

Today is the last day it can file the audited accounts before facing suspension from the stock exchange.

It is interesting to see what's happening tomorrow.

[whatsup]

I heard on last nights 1zb's business programme that Allied F had repayed its bank debt and can now go ahead with the capital raising via a cash issue, from what I understand its rural business is going well with a very loyal farmer base and if they can succefully recapitalise the company it should has some future.

[Alan3285]

I heard on last nights 1zb's business programme that Allied F had repayed its bank debt and can now go ahead with the capital raising via a cash issue, from what I understand its rural business is going well with a very loyal farmer base and if they can succefully recapitalise the company it should has some future.

Yep - They made a formal announcement to the NZX that the Westpac loan was fully paid off, and their overdraft facility is now only $250,000.

Also, they have re-negotiated the amounts owed to ANF (with the receivers of that company), so they won't be subject to an imminent call on those facilities.

Certainly looks like they are making good headway. I hate to say it, but I think the shares were potentially under valued at 1.6c yesterday, although I note that they are back up to 2c today. Just goes to show that I was wrong on the shares!

Alan.

[Xerof]

I think the shares were potentially under valued at 1.6c yesterday, although I note that they are back up to 2c today.
Alan.

The Hanover lot will be delighted to hear that Alan - only another 20cents to go before they're back to debt for equity swap price

[Alan3285]

The Hanover lot will be delighted to hear that Alan - only another 20cents to go before they're back to debt for equity swap price

Interesting perspective Xerof.

Personally, I don't believe that the Hanover investors would have gotten back the 83c in the dollar (or whatever it was supposed to be) had they stayed with Watson & Hotchins.

Your faith in the dynamic duo is ... interesting.

Alan.

[Xerof]

Whoa there tiger - MY faith in the dynamic duo !!! Not here pal.

I was merely reflecting on how awful a mess this whole episode has become

[Alan3285]

Whoa there tiger - MY faith in the dynamic duo !!! Not here pal.

I was merely reflecting on how awful a mess this whole episode has become

But do you think the Hanover investors have been badly served by taking up the Allied Farmers offer compared to staying with W&H and getting their

debt for equity swap price

Looks to me like it is possiuble they will have been well served by ALF?

Alan.

[Xerof]

where there is life there is hope I suppose Alan