PGC report searnings, expresses sorrow for those lost in quake

Tuesday 1st March 2011

Pyne Gould Corp (PGC) today reported its interim results while expressing great sorrow for the people still trapped in its collapsed building in Christchurch.

"In releasing PGC's half-year result, the board and management of the company wish to extend their sympathies and condolences to everyone who has been affected by the devastating Christchurch earthquake," the company, which has a long association with the city, said.

From a company perspective it saw the six months to December 31 as a strategically important period for the group which spans five separate business in the financial and rural sectors.

The company reported net operating income of $43.2 million in the six months to December 31, down from $49.5 million in the corresponding six month period in 2009.

After one-off costs relating to restructuring and repositioning of the company PGC reported a net loss after tax of $37.2 million compared to a net profit after tax of $10.1 million in the year earlier.

The principal contributor to the loss was the previously foreshadowed $30.3 million non-cash write down of PGC's 18.3% holding in PGG Wrightson, after PGC agreed to accept Agria's partial takeover offer for all of its holding in PGG Wrightson at 60 cents a share. PGC had previously equity accounted its investment at 82 cents per share as it has been a long term strategic investment for PGC.

PGC chairman Bruce Irvine and chief executive Jeff Greenslade said a highlight of the period under review was the successful and complex merger between PGC's finance company Marac, CBS Canterbury and Southern Cross Building Society to form Combined Building Society. The transaction was completed in early January 2011.

"Given the importance of Marac to our business, the successful delivery of this merger was a key strategic outcome. Combined Building Society, which now includes Marac, is well positioned to drive its growth through servicing the banking needs of Heartland New Zealanders," the men said.

Commenting on the earthquake on February 22, the men said ten staff from its Perpetual Trust business and four from Marac remain unaccounted for and were believed to still be in the Cambridge Terrace building. A number of others have been severely injured.

"Our immediate focus and priority is to support our staff and their families as everyone struggles to come to grips with the events of the past week. We are also in the process of contacting our customers in the region to see how we can help and assist them through this horrific event," the men said.

NZPA

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