Allied Nationwide posts NZ$1.63 mln half year loss

Allied Nationwide Finance posted an after tax loss of NZ$1.63 million for the six months to December 31, blaming the recession and a challenging trading environment along with its amalgamation with Spiers Finance. "While the interim result is disappointing, it is reflective of the extremely difficult economic environment, for the Company and its customers, over the period," Chairman John Loughlin said. Total group assets rose to NZ$430 million from NZ$191 million at the end of June, largely due to the addition of Spiers Finance, Loughlin said. He said Allied Nationwide currently had liquidity of NZ$75 million cash, down from NZ$76 million at December 31 a year earlier. "Essentially this year was always going to be difficult given the recession and challenging trading environment," Chief Executive John Mallon said. "We have therefore been taking a conservative approach to our funding and lending activities to ensure Allied Nationwide is well positioned for the future," Mallon said. "While our current cash position is having a short term impact on profitability, it is appropriate to remain liquid in the current environment and doing so enables Allied Nationwide to continue to support its existing customers. We will also continue to build our rural and asset finance businesses and are working on a number of initiatives in this regard," he said.