ALF - Allied Farmers Limited

[Balance]

Big fall in the profitability of the Livestock division at PGW just announced. Add in corporate costs and it is now loss making. PGW can support these losses on the strength of profits from their other divisions. ALF cannot do the same. If I was a betting mutt I would say it is all over now for Allied shareholders.

SNOOPY

Connected the dots well there.

Could be positive for PGW as a bolt on acquisition?

[Vaygor1]

ALF must be VERY close to some kind of announcement - due out about now even if these statutory demands didn't exist.

Certainly some time this week I would have thought ---- but then again the last few of ALF's 6-monthly and annual announcements have been late.

[Xerof]

They only have red ones.....

[blobbles]

Half year report out, pretty much what I expected...

https://www.nzx.com/companies/ALF/announcements/233662

[blobbles]

Oh yeah, the bit I like:

The focus for the Group has been to continue to sell assets to reduce debt, and for the six month period total secured debt has reduced by $15.5m. Further reductions are expected in the next six months as the focus continues to be on debt reduction and growing continuing business activities.

You expect to be here in 6 months???? I wouldn't give you 2 weeks with IRD demanding you pay 3.7 million and no one else willing to give you money! Capital raising coming up?

[Vaygor1]

Result (unaudited) still slightly worse than I expected even given the write-downs. I would have thought if they were going to go bust that ALF would be obligated to provide news that would be much more doomy and gloomy than this.

As for the $540k, they don't have to come up with a cent of it at the expense of a $3.4M hit on the balance sheet. They do not seem to be concerned at all regarding the IRD.

Pretty boring really.

[J R Ewing]

I guess they would only be concerned about the IRD if they were personally liable for the tax. When it's only banks, shareholders and creditors money - why worry?

[Vaygor1]

I guess they would only be concerned about the IRD if they were personally liable for the tax. When it's only banks, shareholders and creditors money - why worry?

Yes that is guess, and a bit wide of the mark. You read the announcement on it? It is for money they owe.

[minimoke]

No.it is tax afrl owes. Directors don't pay it out of their pocket.though the salaried people have probably been paid in preference to ird.

[J R Ewing]

. They do not seem to be concerned at all regarding the IRD.

Pretty boring really.

Just saying that if I was in receipt of a demand for 3.7M from the IRD - it would worry me. I hope it worries ALF as well. Even if it is partitioned off from NZ Farmers Livestock or whatever else.