Pyne Gould chair under fire over audit delays

Bryan Mogridge faced a salvo of investor questions. Photo / Jason Oxenham

Pyne Gould Corporation chairman Bryan Mogridge faced a barrage of investor questions around auditing delays at the company's annual meeting in Auckland yesterday.

And his re-election was opposed by the Shareholders Association, which threatened to request that trading in Pyne Gould shares be suspended if "some comprehensive and satisfactory answers" were not provided at the meeting.

Guernsey-based Pyne Gould had its stock suspended from trading in October after the company, controlled by managing director George Kerr, missed the deadline for filing its annual report.

Trading resumed when the report was filed in November with a tag from auditor PwC, which said it was unable to obtain sufficient information about Pyne Gould's investment in the Torchlight Fund, which has targeted distressed assets.

Yesterday, Mogridge said the Torchlight audit was expected to be released when the the company reported its half-year result, for the six months to December 31, in early 2015.

Shareholders Association associate director Alan Best told the meeting that Mogridge's performance as Pyne Gould chairman "did not bear close scrutiny".

"He really is in the chair when the state of the accounts today is inadequate," Best said, adding that Mogridge was "closely aligned with the company historically" and could not be considered an independent chairman.

The association said it was "completely unsatisfactory" for Pyne Gould to be holding an annual meeting without a complete set of audited accounts.

"Unless we hear some comprehensive and satisfactory answers to shareholders' questions, NZSA will consider asking for PGC shares to be suspended from trading until audited accounts are produced because, in our view, the market is currently not properly informed," it said.

Mogridge, who was re-elected yesterday, defended his track record, pointing out the key role he played in the firm's $250 million capital reconstruction.

Pyne Gould reported a profit of $18.4 million for the year to June 30, down from $45.2 million a year earlier. Its shares closed down 1c at 46c yesterday.

The issue

• Pyne Gould released its annual report last month without a completed audit from PwC.

• Shareholders complain they are not being properly informed about the firm's financial situation.