Finmedia to liquidate

Corporate dairy farmer-turned investment company FinMedia announced today it is mulling voluntary liquidation.

The news came as the firm revealed a smaller June half loss of $290,000 from $645,000 a year earlier.

FinMedia was ticked off by the Stock Exchange (NZX) earlier in the day for late filing of its result, which was due on Monday.

FinMedia, formerly known as Dairy Brands, cashed up its farms at the height of the dairy boom and bought a majority stake in UK financial services firm Hemscott.

It has since reduced its stake in Hemscott from 55 per cent to 22 per cent.

With the costs of pursuing further investments very high, and FinMedia's share price languishing below its net tangible asset (NTA) value, the company is considering cashing up and returning capital to shareholders.

The move will be put to a shareholder vote on October 28.

Shares in FinMedia last traded on August 3 at $1.05 against a year high of $1.40 and a low of 92c.

Hemscott, which reported earnings before interest, tax, depreciation and amortisation (ebitda) of 1.2 million pounds in the June half, last traded yesterday at 37p. That implied a net asset value per share of $1.49, FinMedia said.

As at June 30, FinMedia had cash and short term deposits of $5m.

- NZPA