PGC reveals $22m gap in accounts
Pyne Gould Corporation has hinted at taking legal action after admitting a $22 million gap in its accounts, having booked a profit that didn't materialise.
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Hawke’s Bay
Pyne Gould Corporation [NZX: PGC] has hinted at taking legal action after admitting a $22 million gap in its accounts, having booked a profit that didn’t materialise.
PGC, which is controlled by George Kerr, reported a $26.6 million profit in the year to June 2014, largely due to what it described as a $22 million gain from the sale of Perpetual Trust to Andrew Barnes’ Bath Street Capital.
NBR understands the amount was classified as a deferred payment for the acquisition of Perpetual but would only be paid in the event a newly incorporated company is listed on the NZX.
PGC said in a statement to NZX this morning that no money has been received.
“PGC has made an enquiry as to the likely timing of payment, and has now received a response that does not indicate any particular timeframe for receipt of the consideration amount.”
In November NBR reported Mr Barnes as saying he had no plans to float Perpetual, which he has merged into Guardian Trust.
That put some doubt on PGC’s treatment of the $22 million gain booked as profit in its year-end accounts.
In its statement PGC said the amount will now be reclassified as an “available for sale financial asset” and measured at “fair value” by an independent valuer.
“The outstanding amount and its status will be pursued through the appropriate channels,” PGC added.
Duncan Bridgeman
Fri, 30 Jan 2015
Fri, 30 Jan 2015
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PGC reveals $22m gap in accounts
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