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| From: | "Peter Maiden" <pmaiden@xtra.co.nz> |
| Date: | Sat, 6 Jan 2001 08:04:05 +1300 |
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Good responses to my post about Nufarm. Having such
debates and the sharing of info and thoughts is very valuable.
I am also pleased that the debate did again raise the
issue of a merged ASX/NZSE and how NZ companies might find it difficult to make
a name for themselves on the ASX.
For those who didn't read them before have a look at
this article from Terry Hall in the Dominion a few weeks ago. Mention is made of
Nufarm (with a bit of interesting history about Hoggards hype with a new drug in
1994, a foray into China and cynically the move to Australia was a tax advantage
for the two major shareholders etc), Nuplex, Baycorp and Lion
Nathan.
Also on stuff,co,nz was an article on the Tower
intention to go Australia and the pitfalls they face
In respect of asset sales and Nufarm performance I have
had a look at their last financial statements. Must say they are a monster of a
thing to read - and not all that easy to get a good understanding of the
true picture.
However - in 2000 there were $50.3M of asset sales
(gross proceeds in revenue). On the other hand under expenses there is a line
'carrying cost of non-current assets disposed of' of $32.2M. After that it is
hard to ascertain the profit impact of these asset sales.
A hint as to how much is indicated to a certain degree
in that they have decided to 'write off major project development expenditure'
to the value of $8.3M This leaves $1.4M in intangibles related to
product development.
No doubt their is some profit impact from true
non-operating operations but how much is hard to calculate. However due to the
number of acquisitions and divestments and other restructuring costs this is not
at all surprising. I have sent them an e-mail asking for some clarification of
some points - don't hold out much hope of a positive reply.
We should note that over two years migration costs to Australia have been
in excess of $6M.
Regards
Peter
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