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Pyne Gould says FY profit to be about $30 mln after asset sales

Thursday 13th June 2013

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Pyne Gould, the asset management firm controlled by George Kerr, says it will return to profit this year on gains from assets sales after an impairment-driven loss in 2012.

Profit will be about $30 million in the year ending June 30, from a loss of $47.7 million a year earlier, the Auckland-based company said in a statement.

The profit gain will lift the company's book value by 31 percent to about $127m, Kerr said I the statement.

He had previously forecast profit of $10 million and said the additional $20 million was "predominantly from realised gains from non-core asset sales."

In the first half, Pyne Gould sold holdings in Heartland New Zealand and PGG Wrightson, and has since. In the second half it sold Perpetual Group, van Eyk Research and agreed to terminate Real Estate Credit management contract with Heartland. It is awaiting regulatory approval for the sale of perpetual.

Pyne Gould shares last traded at 26 cents, valuing the company at $56 million. The stock has fallen about 10 percent in the past year.

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