NZF may cut value of Mike Pero goodwill
NZF Group says it may need to write down the carrying value of its 50% stake in Mike Pero Mortgage Holdings.
The NZX listed firm said its board was completing its year end financial review process, including its annual test for impairment of goodwill.
"Goodwill impairment testing has indicated that the estimated recoverable amount of goodwill allocated to the Company’s Joint Venture Investment in MPMH Limited is likely to be lower than its carrying amount," NZF Group said.
"The Directors are currently considering the level of impairment loss required to write down its carrying amount to its estimated recoverable amount, which they expect to be up to $7 million."
However, the impairment loss wouldn't affect normalised earnings, as it will be reported as part of the impairment charge for the year. Full details will be included in NZF Group's preliminary annual results due on Monday May 31 and in the company’s annual report.
The other half of Mike Pero Mortgage Holdings is owned by Australia's Liberty Financial.
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