IRG full-year loss widens to $1.1 mln as costs rise; assets under review

Friday 15th June 2012

Investment Research Group, the NZAX-listed financial advisory and media company, reported a wider full-year loss on rising compliance costs and accounting adjustments, while income was little changed.

The loss was $1.14 million in the 12 months ended March 31, from a loss of $1.02 million a year earlier, the Auckland-based company said in a statement. Total income fell 3.9 percent to $2.06 million while expenses rose 1.2 percent to $3.2 million.

“IRG has had static income and high compliance costs,” said chairman Marvin Yee.

Shares of IRG last traded at 0.3 cents, valuing the company at $1.6 million, and have shed 50 percent of their value this year. This week the company said it plans to sell its assets and retain the shell as a listed entity after reviewing its business options. Managing director Brent King is mulling whether to make a bid.

King said a decision on the future of the assets was likely to be made within “days or weeks.” Any offer he made would have to be on an arm’s length basis.

“We’ve had some people coming in and we know some are tyre kicking,” King said. “We’ve taken a realistic approach. Genuine buyers will be entertained.”

IRG said this week that its 55 percent-owner, GA Sego, will “provide assistance to the company during this process.” GA Sego, which is owned by Malaysian businessmen Hamid bin Bugo and Rewi Hamid Bugo, and Timothy Keene’s Auckland-based GA Group, provided financial support via a share placement last year.

IRG has three operating businesses – IRG Media, which publishes NZ Investor Monthly, IRG year Book, Investors Alert and runs websites including Sharechat, which it acquired last year, and Moneyonline. Its IRG Investment Advisors unit offers brokerage and advisory services and its IRG BOP unit is the Tauranga-based advisory service formerly known as Ellerie Cornwall.

BusinessDesk.co.nz

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