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Pyne Gould Corp, the asset management company controlled and managed by George Kerr, reported a return to first-half earnings and forecast a full-year profit, reflecting year-earlier charges that won’t be repeated in the current period.
Profit was $1.5 million in the six months ended Dec. 31, from a loss of $27.1 million a year earlier, when it recognised impaired asset expenses and investment writedown of $29 million. Net operating income from continuing operations rose to $11 million from $10.9 million.
Kerr unsuccessfully tried to take the company private, saying it was now in a development phase and wouldn’t be paying dividends. It sold its Marac unit into Heartland New Zealand, leaving a grab-bag of assets. During the first half the company completed the liquidation of its residual PGG Wrightson and Heartland shares and repaid $20 million of bank debt.
The shares last traded at 27 cents and are up 3.9 percent this year.
(BusinessDesk)