NZ: T&G to write down US$17M in assets
In an announcement to the New Zealand Stock Exchange, the company highlighted that kiwifruit vine disease Psa, poor grower returns and economic uncertainty had led to considerable orchard land depreciation.
The write off also includes a deferred tax asset of NZ$8 million ($6.4 million) due to the likely takeover by German company BayWa AG. The company emphasized that the underlying asset base has not changed and the write downs did not affect the cash position of the group.
"T&G has traded profitably during 2011 with the draft pre-audit operating performance being an improvement on the 2010 operating performance," said chairman Rob Campbell.
"However, as a result of the above adjustments, and non-reimbursable expenses incurred in respect of the BayWa AG offer, T&G is expected to record a loss for 2011 of approximately (NZ)$17 million (US$13.7 million) to (NZ)$19 million (US$15.3 million)."