Business

Allied Farmers reports big loss for second year

08:38 am on 30 August 2011

Allied Farmers has reported another multi-million dollar loss and has once again written down the value of Hanover's assets.

The ailing rural services firm lost $43 million in the year to the end of June compared with a loss of $77.6 million in the previous year.

The results include a writedown of almost $30 million in the Hanover and United Finance assets it bought for nearly $500 million in late 2009.

Revenue fell by 45% to $59 million.

Allied Farmers' board admits it has been a very challenging year, with the receivership of Allied Nationwide Finance and the continued writedowns of the Hanover assets.

But it says it repaid a $16.5 million loan to Westpac, its livestock operations have had a record year, and, with the outlook for the dairy industry improving, it expects improved profits from its rural division in the 2011/12 year.