4 Oct 2011

Allied Farmers threatened with suspension of trading

7:01 am on 4 October 2011

NZX says it will suspend trading in Allied Farmers shares unless the ailing rural services company releases its annual report by Friday.

The report was due to have been issued last Friday, but Allied Farmers says it is waiting on its audited financial statements to be finalised.

It says a number of matters have occurred since it issued its unaudited results in late August, one of which is expected to have a positive effect on the group.

Allied Farmers says there's a good chance the audit will be completed in the next few days, so the board felt it was prudent to delay the report's release so it can be included.

Allied Farmer's unaudited results showed it lost $43 million in the year to the end of June, compared with $77.6 million a year earlier.

The result included a writedown of almost $30 million of the Hanover and United Finance loans it bought for $500 million in late 2009.

Shares in Allied Farmers fell a tenth of a cent on Monday to close at three tenths of a cent.