KEY POINTS:
Stricken property finance group (PFG) yesterday reported a $6.7 million loss for the March year, twice as bad as a preliminary report in April.
The group's primary subsidiary, propertyfinance securities limited (PFSL), went into receivership last August owing about 4000 retail investors $79 million in debentures. The parent company managed to pull its subsidiary out of receivership in February.
The NZAX-listed PFG explained the deterioration from the April report by saying it had had to increase its bad loan provisioning by $1.1 million on account of "current [property] market conditions". The April report included a $1.5 million benefit from tax losses, but that has been excluded because of uncertainty on the potential use of it.
Operating revenue fell to $20 million from $36 million. Assets have shrunk to $130 million from $533 million with loans receivable falling to $21.5 million from $412.6 million.
On the liability side, it now has $38.4 million of rated mortgage bonds, but debt notes have shrunk to zero from $426 million. Debentures liabilities have fallen to $74.4 million from $86.6 million, but debenture accrued interest has grown to $5.5 million.
Shareholder equity has diminished to $2.6 million from $7.3 million.
The company had negative cashflow of $550,000 against positive cashflow a year ago of $4.6 million.
Cash on hand at the bank has shrunk to $1.7 million from $67.7 million a year ago while deposits on call have fallen to $4.9 million from $41.5 million.
PFG said it had closed its branches and laid off 41 staff, leaving the company with just four staff.
- NZPA
