By GEOFF SENESCALL
Brierley Investments says it has cleared the slate for a new beginning after taking a $US162 million ($385 million) hit for the year to June.
This declaration follows a turnaround the previous year from a $904 million deficit to a $114 million profit amid comments that the company had been substantially restructured, was profitable and was in a sound financial position.
Speaking from the company's new Singapore base, chief executive Greg Terry - appointed in July last year - said he would not defend what had been said in the past.
"Our view as the current management from the start of the year is that we have reason to believe now ... that we can defend the balance sheet the way it is.
"We have taken the steps which we think are prudent to make sure we don't have any more bad surprises. We think our assets are pretty solid at these values."
Brierley's loss was made up of a mix of general provisions and write-offs as well as a goodwill write-off from its key associate Air New Zealand after a $US64 million tax provision.
Mr Terry's only note of caution was over Brierley's investment in Molokai Ranch in Hawaii, which remains an open issue.
"The board has decided to maintain the valuation for the time being pending finalisation of the revised strategy currently under discussion with possible partners."
But Mr Terry said Molokai remained a cash drain and further writedowns were possible.
One of the big criticisms of Brierley over the years has been its high head office costs.
The present year was no exception with costs of $78.6 million, which the company said included one-off restructuring charges of $26 million.
This compares to $66 million the previous year, which also included restructuring costs of $21 million.
Defending the current position, Mr Terry said he hoped costs would be substantially higher "because the net asset value will have grown."
"As a percentage of assets under management, if this was a venture capital fund, people would pay us 2.5 per cent management fee and give us a 20 per cent carried interest to manage these assets. Our overheads as a percentage of assets under management is very small."
He also raised the possibility of returning to Brierley's old stamping ground in New Zealand.
"It just makes sense given how cheap things are at the moment ... In fact I wish I had several billion dollars as I would be tempted by New Zealand Telecom. But we are not big enough to do things like that."
Brierley says big loss means new beginning
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