NZF Group searches for new auditor after RSM Prince quits

Friday 14th March 2014

NZF Group, which was fined and suspended from trading on the stock exchange last year after a four-and-a-half month delay in filing its annual report, is on the hunt for a new auditor after RSM Prince resigned.

Accounting firm RSM Prince said the relationship had run its course, Auckland-based NZF Group said in a statement today.

In November the regulatory arm of stock exchange operator NZX fined NZF Group $35,000 and censured the financial services company after a delay in filing its 2013 annual report. At the time NZF Group said it was unable to fully value its divestment in its 50 percent stake in MPMH, a holding company for Mike Pero Mortgages, as it no longer had access to the financial statements.

NZF Group established the MPMH joint venture with Australasian firm Liberty Financial in 2006. The venture soured as NZF Group sought to divest, which Liberty disputed. The worth, and subsequent impairment to be recognised by the divestment of MPMH was also disputed, with discrepancies between valuations ranging from $2.76 million to NZF's own valuation of $7.51 million.

In its independent auditor's report on the annual financial statements RSM Prince said it had not received all the "information and explanations" required and "accordingly, we do not express an opinion on the financial statements".

Shares in NZF Group were unchanged at 1 cent, and have fallen 97 percent from 30 cents over the past five years.

BusinessDesk.co.nz

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