Strategic Finance loss larger than expected

Strategic Finance Ltd (SFL) said the audit of its half-year accounts has been delayed while talks continue with its trustee.

The company today released unaudited figures for the six months to December 31 showing show an after-tax trading loss of $99.8 million and a net loss after tax of $32.8m.

On January 15 Strategic Finance signalled further significant provisioning on its property portfolio that resulted in the finance company's loan book value falling below 75 per cent of principal owed to debenture holders, depositors and subordinated note holders.

This, as well as the failure to make the target payments to investors on January 7, triggered an event review and talks with the trustee.

Strategic Finance said today that it expected an update of the discussions to be released shortly.

"It is, however, as a result of these discussions that the timing and conclusion of the half-year audit by KPMG has become delayed.

"We expect to have the audit complete before March 31, 2010."

The loss reported today was higher than the $84m net loss after tax signalled in January, and reflected further additional provisioning of $16.1m.

- NZPA