Re: Testing year but progress noted, July 29 story.
I note the expensive investment in Flick Energy came to an end in the financial year ended March 31, 2023. Is the CEO able to detail the exact loss on the investment? It looks to be around $6 million but could possibly be much more.
In previous years the investment has been classified as an “Investment in Associate” and also a “Financial Asset”. It is unclear, to me, whether multimillion-dollar losses of previous years were absorbed into the Eastland Group P&L or held within the asset price? Therefore, a possible question for the AGM: what was the total loss from the Flick Energy investment (including losses realised in the P&L) and can the CEO and board give the community some confidence that investments such as this will not continue to occur?
The reason for concern should be obvious. Eastland Group is investing heavily in the energy sector where wholesale electricity prices, even allowing for hedging, are volatile. The future performance of Eastland Group is reliant on strong commodity prices in the wholesale electricity market and the log market. Confidence in the decision-making of the board and CEO is essential.
John Simpson, Wellington
