Powerhouse Ventures turned to a full-year loss after writing off its investment in hydroelectric turbine designer Hydroworks and recognising other one-time decreases in the value of its investments.
The Christchurch-based, ASX-listed incubator reported a net loss of $11.2 million in the 12 months ended June 30 from a profit of $765,000 a year earlier. Total income and fair value changes were a deficit of $907,763 compared with income of $8m a year earlier. Expenses rose to $11.7m from $5.9m.
An interim liquidator was appointed to Hydroworks, in which Powerhouse holds a 24 per cent stake, this month. Powerhouse's full-year accounts show a $4.3m impairment to write off its investment in the business, $2.3m to fully impair short-terms loans and interest owed to the company by Hydroworks and $1m for the potential impact of a lien held by the bankers of Hydroworks. Powerhouse also took a one-time charge of about $3.1m to reduce the value of other investments in its portfolio, which it didn't identify.
Powerhouse went public in an A$10.2m initial public offering last year at A$1.07 a share. It traded at 35 Australian cents on the ASX yesterday, when the company said managing director Stephen Hampson has resigned, effective immediately, and has been replaced by chief financial officer Paul Viney. In an unsettled year for the management and governance of the company, Russell Yardley was named chair in June, replacing Blair Bryant, who departed the company after it was made public that he failed to disclose his bankruptcy in the US.
The board's portfolio committee commissioned a full review of the investment portfolio after the listing last year. Today the board said it had "reviewed this work and resolved that some investee companies are 'off model' due to a low Powerhouse shareholding and other factors."
