Pyne Gould's NZX suspension lifted after first-half results filed

Pyne Gould Corp [NZX: PGC] shares are allowed to trade again, ending a seven-month suspension, after the asset manager controlled by George Kerr filed its first-half results.

The Guernsey-based long-term investor's portfolio held net assets worth £50.81 million, or 23.49 pence per share, as at December, down from £55.1 million, or 26.61 pence, a year earlier.

Pyne Gould reported a net loss of £1.5 million in the six months from a loss of £5.3 million a year earlier, due to foreign exchange losses.

The first-half accounts follow last month's filing of the firm's long-delayed 2015 annual report, which was held up because of a change of auditors, followed by consolidation of its Torchlight Fund LP unit into its accounts.

That delay meant Pyne Gould missed NZX's deadline to file its 2015 accounts, resulting in the suspension of trading in its shares, the second year in a row it was censured, and while the annual report was filed last month, the halt stayed in place because the first half results were overdue.

Before the October suspension, the company's shares last traded at 24.5c, valuing the firm at $NZ50.8 million.

The results show Pyne Gould lifted its cash balance by £20.6 million to £31.6 million, due to strong property sales in Victoria for its 100% owned developer RCL, and the sale of Local World to Trinity Mirror, at four times the firm's initial investment.

Pyne Gould's current liabilities more than doubled to £56.5 million, of which £11.2 million was bank debt and £41.1 million was a third party corporate debt facility.

"This marks the end of the restructuring period of RCL and means RCL has the financial capacity to internally fund working capital and consider both internal and external funding options for growth," Pyne Gould says.

"This allows greater reinvestment in the land bank and consequently greater long-run value for investors."

The latest accounts disclose contingent liabilities relating to several legal disputes, with an application to wind up the Torchlight fund in the Cayman Islands, a disputed penalty fee on a $A37 million loan from Australian businessman John Grill, and claims over Pyne Gould's sale of Perpetual Trust to Bath Street Capital.

(BusinessDesk)