Applefields mulls future direction

By Phil Boeyen, ShareChat Business News Editor

Monday 18th June 2001

Property development company Applefields (NZSE: APF) has posted a reduced full-year loss of $674,000 as it decides its future plans.

The company, which had sales for the year of $3.9 million, says it is now essentially a shell company with $50 million in carried forward tax losses, having repaid all term debt and resolved matters with Tower Trust.

The company has also repaid investors in the Rural Super Bonds all of their capital and also interest during the period of the winding up of the scheme.

Company directors say they are pleased to have satisfied all obligations to the scheme, although still believe that the appointment of receivers was inappropriate and led to an unnecessary period of great expense.

"However, all that is now over and the company is left with a series of joint ventures based on rezoning parcels of land around Christchurch, in return for a share in the value thereby created."

Applefields says its future options are to negotiate the purchase of assets, which add value to the company's balance sheet, accept further investment capital or to progressively expand from the present base.

"As stated earlier, negotiations continue with parties interested in selling assets to Apple Fields although nothing has yet been finalised."

"The directors remain interested in utilising the company's skills in developing large scale property concepts and gaining zoning and development approval to these, should opportunities arise."

Applefields shares have more than doubled since January trades to their current price of around 9 cents after confirmation in April of settlement of its Noble property.

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