KEY POINTS:
Lombard Group sank to a $21.8 million annual net loss after directors decided to write down its Lombard Finance and Investments business, which was placed in receivership in April.
Auditors KPMG had indicated that the financial statements for the year ended March 31 would have a qualified opinion, as opposed to the usual unqualified opinion, because they and Lombard directors had no access to the records of companies in receivership.
The unaudited report was prepared from management accounts held by the group at the date of receivership on April 10.
Directors decided to fully impair the balance sheet of Lombard Finance and its subsidiaries. That resulted in a $20.5 million impairment loss from the writedown of Lombard Group's $42 million investment in Lombard Finance, including the total writeoff of $40 million of shares, and a $5.9 million impairment of goodwill.
"Given the result, the group has been undertaking a restructuring with a view to restoring the profitability in the near term," said acting chairman David Wallace.
Shares in Lombard closed steady at 15c on turnover of just 1850 shares.
- NZPA
