Announcement
FORECAST: SEK: OPAC Italian Orchard Failure to Impact on Seeka's Results
09:03am
SEK
07/04/2010
FORECAST
REL: 0903 HRS Seeka Kiwifruit Industries Limited
FORECAST: SEK: OPAC Italian Orchard Failure to Impact on Seeka's Results
OPAC Italian Orchard Failure to Impact on Seeka's March Results
Opotiki Packing and Coolstorage Limited (OPAC) has advised Seeka Kiwifruit
Industries Limited (Seeka) that its 84 hectare Newgold orchard in Italy,
which is planted in Zespri Hort 16A Gold kiwifruit, has suffered a continuing
outbreak of a bacterial disease which is threatening the orchard.
The Newgold orchard investment has a carrying value at 31 December 2008 of
$7.160m in the OPAC financial statements. The OPAC Board has determined that
the full cost of this investment should be written off and this is likely to
result in OPAC recording a loss for the financial year ended 31 December
2009.
Seeka will record its share of the loss in its own group financial results
for the year ended 31 March 2010, and as a result reduce its investment in
OPAC (currently recorded as $4.209m in Seeka's financial statements as of 31
March 2009). Any impact will be non cash, is expected to be less than $1m,
and will not impact on Seeka's banking covenant compliance or facilities.
In releasing its interim results on 26 November 2009 Seeka advised that it
expected its full year operational earnings before tax, non-recurring items,
impairments and items related to the purchase of Huka Pak for the year ended
31 March 2010 to be in the range of $6.9 million to $7.5 million (2009
earnings $5.6 million). Excluding Seeka's share of the anticipated OPAC
loss, this guidance range remains unchanged.
For further information please contact:
Michael Franks
Seeka Chief Executive 021356516
Stuart McKinstry
Seeka Chief Financial Officer 021215583
End CA:00193427 For:SEK Type:FORECAST Time:2010-04-07:09:03:09
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