FLLYR: CYT: 2010 Full Year Result Financial Statements

16 Jun 2010 3:44 pm

CYT 16/06/2010 FLLYR

REL: 1544 HRS Cynotech Holdings Limited

FLLYR: CYT: 2010 Full Year Result Financial Statements

Cynotech Holdings Limited have provided NZX with its Financial Statements for its 2010 Full Year Results.

Commentary

The Directors have taken a very conservative view of the results for this period and have reviewed the holding value of all Group assets to ensure the current values are realistic

The following impairments and Provisions have been made: $ '000 Group Investment in Snowdon 1,532 Investment in Findata 628 Snowdon Ltd Plant write-down 387 Cynotech Corporation Ltd Property held for sale 327 Cynotech Finance Group Ltd Impairment of Fair Value loans 2,604 Receivables impairment 946 $6,424

This provisions have been made due to valuations we have had undertaken, and market assessments of value in subsidiary and an associate business. We have also re-assessed the collectability of some Fair Value loans, and have written down the book value of some loans pending repayment arrangements being made or repayments being re-instated.

Overall in terms of our trends in performance Group Sales have increased slightly. It is the write down in capital investments that has been undertaken affecting the annual result, yet despite this our overall equity percentage has increased marginally to 40%. This has been achieved as a consequence of re-paying $1.4 million of group borrowings, particularly to banks.

The financial statements are unaudited.

There has been a major change in shareholding at Year End, with Cynotech Securities Group Ltd achieving a 78% shareholding of Ordinary shares of CHL on balance date. Since that time the focus has been to drive for increased efficiencies, reduction in costs, and improving the Groups result in terms of the results of its subidiaries.

AR Hawkins End CA:00196175 For:CYT Type:FLLYR Time:2010-06-16:15:44:37

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