Interim Report for half year to 31 December 2016

Allied Farmers Limited

Results for announcement to the market
(Unaudited)
Reporting Period 6 months to 31 December 2016
Previous Reporting
Period
6 months to 31 December 2015

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ 10,033
(2.18)%
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
$NZ281
17.08%
Net profit (loss)
attributable to security
holders.
$NZ281
17.08%

Interim/Final Dividend Amount per security Imputed amount per
security
It is not proposed to pay
dividends.
$ N/A

Record Date Not Applicable
Dividend Payment Date Not Applicable


Comments:
(see below)
A brief
Se


Net Tangible Assets per
security
$NZ 0.02 dollars $NZ (0.02) dollars

---

ContentsPage
Statement of Profit or Loss and Other Comprehensive Income 2
Consolidated Statement of Changes in Equity3
Consolidated Balance Sheet4
Consolidated Statement of Cash Flows5
Reconciliation of Operating Cash Flows6
Statement of Accounting Policies7
Notes to the Financial Statements8-15
16
ALLIED FARMERS LIMITED
FINANCIAL REPORT
For the six months ended 31 December 2016
Company Directory

Allied Farmers Limited and Subsidiaries
For the six months ended 31 December 2016
Note
NoteDecember
JuneDecember
6 months
Year6 months
2016
20162015
$000
$000$000
Revenue
Sale of goods
4,420
5,948 5,218
Interest income
32
175 76
Commission Income
5,446
9,7554,826
9,899
15,878 10,120
Other income
134
162 137
134
162 137
Total income
10,033
16,040 10,257
Expenses
Cost of inventory sold
3,719
4,642 3,871
Interest and funding expense
282
658 370
Rental and operating leases
54
107 52
Employee benefit expense
2,404
5,740 2,190
Depreciation and amortisation5
275
532 271
Other operating expenses
2,742
2,7872,683
Total expenses
9,475
14,466 9,436
Profit before income tax558
1,574 821
Income tax expense
82
182 205
Profit for the period476
1,392 615
476
1,392 615
281
705 240
195
687 375
Basic (cents per share)
0.17
0.480.18
Diluted (cents per share)
0.17
0.470.17
Statement of Profit or Loss and Other Comprehensive Income -
Unaudited
Total comprehensive income
The notes on pages 8 to 15 are an integral part of these financial
statements.
Profit/(loss) Attributable to:
Owners of the Parent
Non-Controlling Interests
Total earnings per share attributable to the equity holders of the Parent
Company:
2

Consolidated Statement of Changes in Equity - Unaudited
Allied Farmers Limited and Subsidiaries
For the six months ended 31 December 2016
Note
$000$000$000$000
Opening balance as at 1 July 2015150,247 (152,217) 495 (1,475)
Comprehensive income
Net profit for the 6 months ended 31 December 2015- 240 375 615
Total comprehensive income- 240 375 615
Transactions with owners
Share capital issued1,532 - - 1,532
Purchase of shares in NZ Farmers Livestock Ltd(104) (896) (1,000)
Dividends paid to Non Controlling Interests- - (112) (112)
Total transactions with owners1,532 (104) (1,008) 420
Closing Balance as at 31 December 2015151,779 (152,081) (137) (439)
Opening Balance as at 1 July 2015150,247 (152,217) 495 (1,475)
Comprehensive income
Net profit for the year ended 30 June 2016- 705 687 1,392
Total comprehensive income- 705 687 1,392
Transactions with owners
Dividends paid to Non Controlling Interests- - (344) (344)
Purchase of shares in N Z Farmers Livestock Ltd1,000 (816) (184) -
Share capital issued532 - - 532
Total transactions with owners1,532 (816) (528) 188
Closing balance as at 30 June 2016151,779 (152,328) 654 105
Comprehensive income
- 281 195 476
Total comprehensive income- 281 195 476
Transactions with owners
Dividends paid to Non Controlling Interests- - (146) (146)
Total transactions with owners- - (146) (146)
Closing balance as at 31 December 2016151,779 (152,047) 703 435
The notes on pages 8 to 15 are an integral part of these financial statements.
Accumulated
losses
Non
Controlling
Interests
Share
Capital
Total
Equity
Comprehensive Income for the six months ended 31
December 2016
3

Consolidated Balance Sheet - Unaudited
Allied Farmers Limited and Subsidiaries
As at 31 December 2016
NoteDecember
JuneDecember
2016
20162015
$000
$000$000
Equity
Share capital2
151,779
151,779 151779
Reserves
(152,047)
(152,328) (152,081)
(268)
(549) (302)
Non Controlling Interests
703
654 (137)
Total equity (deficit)435
105 (439)
Liabilities
Current liabilities
Bank Overdraft
453
- -
Trade and other payables3
6,397
7,144 6,304
Borrowings4
1,894
1,546 1,496
Provisions
-
- 566
Taxation
2
151 156
Total current liabilities8,746
8,841 8,523
Non-current liabilities
Borrowings4
3,151
3,782 4,121
Total non-current liabilities3,151
3,782 4,121
Total liabilities11,897
12,623 12,644
Total liabilities and shareholders equity12,332
12,728 12,205
Assets
Current assets
Cash and cash equivalents
-
2,478 1,375
Trade and other receivables
7,208
5,510 5,716
Prepayments
92
308 -
Inventory
340
1 747
Total current assets7,640
8,297 7,838
Non-current assets
Deferred tax asset
407
407 275
Investment 7
455
232 236
Advances7
136
68 171
Property, plant and equipment5
3,519
3,642 3,654
Intangible assets6
175
82 31
Total non-current assets4,692
4,431 4,367
Total assets12,332
12,728 12,205
Director
The notes on pages 8 to 15 are an integral part of these financial statements.
The Board of Directors of Allied Farmers Limited authorised these financial
statements for issue on 27 February 2017.
....................................................Director ......................................
4

Consolidated Statement of Cash Flows - Unaudited
Allied Farmers Limited and Subsidiaries
For the six months ended 31 December 2016
Note
December
JuneDecember
6 months
Year6 months
2016
20162015
$000$000$000
Cash Flows from Operating Activities
Cash was provided from:
Receipts from customersReceipts from customers8,65815,4319,721
8,65815,4319,721
Cash was applied to:
Payments to suppliers and employeesPayments to suppliers and employees(10,094) (13,121) (9,443)
Interest paidInterest paid(282) (658) (370)
Taxation paid(231) (134) (29)
(10,606) (13,913) (9,842)
Net cash flows (used in)/ from operating activities(1,948) 1,518 (122)
Cash Flows from Investing Activities
Cash was provided from:
Sale of property, plant and equipment
-
- 80
Realisation of Investment- 90 -
Dividend received25 25 -
25 115 80
Cash was applied to:
Investing in associate company
7
(213)
(232) (441)
Loan to associate company
7
(68)
(68)
-
Assets purchased
5
(245)
(281) (90)
(527) (581) (531)
Net cash flows (used in)/ from investing activities(502) (466) (451)
Cash Flows from Financing Activities
Cash was provided from:
Borrowings
- 775 -
0775 -
Cash was applied to:
BorrowingsBorrowings(333) (1,290) (226)
Dividends paid to non controlling interests(146) (344) (112)
(480) (1,634) (337)
Net cash flows (used in)/ from financing activities(480) (859) (337)
Net (decrease)/ increase in cash and cash equivalents(2,931) 193 (910)
Cash and cash equivalents at beginning of year2,4782,285 2,285
Cash and cash equivalents at end of year(453) 2,478 1,375
Purchase of property, plant and equipment and intangible assets
The notes on pages 8 to 15 are an integral part of these financial statements.
5

Reconciliation of Operating Cash Flows - Unaudited
Allied Farmers Limited and Subsidiaries
For the six months ended 31 December 2016
Reconciliation of net profit after tax for the year with cash
flow from operating activities:
Note
DecemberJuneDecember
6 monthsYear6 months
2016
2016 2015
$000$000$000
Net profit after tax for the period4761,392 615
Adjustments for:
Share of profit equity accounted
711 18 -
(Profit)/Loss on sale of assets- 26 (9)
Depreciation5275506 271
Interest paid capitalised- - 221
Amortisation of intangibles- 26 -
Movement in impairment provisions on trade receivables- 17 -
Movement in deferred tax assets- (273) (141)
286320 342
Movement in working capital:
Decrease in Loans and Advances- - 90
(Increase)/Decrease in trade and other receivables(1,698)(404) (536)
Increase/(Decrease) in payables and provisions(674)164 67
(Increase)/decrease in inventory(339)46 (700)
(2,712)(194) (1,079)
Net cash (outflows)/inflows from operating activities(1,948)1,518 (122)
The notes on pages 8 to 15 are an integral part of these financial statements
6

Statement of Accounting Policies
Allied Farmers Limited and Subsidiaries
For the 6 months ended 31 December 2016 - unaudited
GENERAL INFORMATION
201 Broadway
Stratford
New Zealand 4332
BASIS OF PREPARATION
These financial statements have been approved for issue by the Board of Directors on 27 February 2017.
The Board of Directors do not have the power to amend the financial statements after they have been issued.
Allied Farmers Limited and Subsidiaries is a rural services group, with its predominant activities comprising
livestock agency services, the procurement and processing of calves, and the provision of asset management
services.
Allied Farmers Limited ("the Parent Company") is a limited liability company, incorporated and domiciled in New
Zealand. The Parent Company's registered address is:
Allied Farmers Limited is a public company listed on the New Zealand Stock Exchange Main Board (NZX code:
ALF).
The Group is a Tier 1 for profit entity in terms of XRBA1.
The Group's financial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP). They comply with New Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS), and other applicable Financial Reporting Standards, as appropriate for profit-oriented
entities. These financial statements comply with International Financial Reporting Standards (IFRS).
The interim financial statements of the Group have been prepared in accordance with the requirements of New
Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting (NZ IAS 34), as
appropriate for profit oriented entities. These financial statements are in compliance with IAS 34: Interim Financial
Reporting. The Group interim financial statements do not include all of the information required for full annual
financial statements.
Where necessary, the amounts shown for the previous periods have been reclassified to facilitate comparison.
The same accounting policies and methods of computation are followed in the interim financial statements as
compared with the annual financial statements for the year ended 30 June 2016
These financial statements are prepared in New Zealand dollars ($), which is the company's functional currency.
Amounts have been rounded to the nearest thousand.
7

Notes to the Financial Statements
For the six months ended 31 December 2016 - unaudited
1.Financial information on segments of the business
Asset
Management
Services
Rural ServicesCorporate
Services
Total
Continuing
$000$000$000$000
32 9,999 2 10,033
- (193) 193 -
32 9,806 195 10,033
- (275) - (275)
- (350) (68) (418)
(1) (8,523) (257) (8,781)
31 657 (130) 558
- (82) - (82)
31 575 (130) 476
Asset
Management
Services
Rural ServicesCorporate
Services
Total
Continuing
$000$000$000$000
33 12,177 122 12,332
- (9,630) (2,267) (11,897)
169
Allied Farmers Limited and Subsidiaries
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker has been identified as the Board of Directors. The Board of Directors considers the
livestock operations nationally as a distinctly separate activity from other operations including the recently ceased Asset
Management Services and the activity associated with being a listed entity and some Group funding which is regarded as
Corporate Services.
The Asset Management Services segment comprises the assets acquired from Hanover Finance Limited, United Finance
Limited and their subsidiary companies. The Asset Management Services activities are carried out by Allied Farmers
Investments Limited and subsidiary companies, predominantly in New Zealand. The Asset Management Services activities are
not subject to seasonality.
The Group's Rural Services activities are operated nationally. During the six months the Group's Rural Services segment
included the addition of a new livestock financing facility. The early livestock finance business growth, impacted operating cash
flows, but was supported by new bank facilities put in place by the launch of this facility. The Rural Services activities are
influenced by seasonality. Dairy herd sales are stronger in the autumn season and calf procurement and processing traditionally
occur in the first half of the year .
Corporate and funding costs comprise the corporate activities of the Group.
Interest and funding expense (external)
Net Other expenses (external)
Profit/Loss before income tax
Income Tax
Profit/Loss after Income Tax
The segment assets and liabilities as at 31 December 2016 and capital expenditure for the 6 months ended 31 December 2016 are as
follows:
Assets
Liabilities
Capital Expenditure
The segment results for the six months ended 31 December 2016 are as follows:
Sales of goods and interest and fee income
Total Income
Depreciation and amortisation
Inter-segmental income
8

Asset
Management
Services
Rural ServicesCorporate
Services
Total
Continuing
$000$000$000$000
137 10,120 - 10,257
137 10,120 - 10,257
- 271 - 271
- 285 85 370
17 8,326 451 8,795
120 1,237 (536) 821
- (205) - (205)
120 1,032 (536) 615
Asset
Management
Services
Rural ServicesCorporate
Services
Total
Continuing
$000$000$000$000
109 11,899 198 12,205
(5) (9,976) (2,664) (12,644)
- 101 - 101
Asset
Management
Services
Rural ServicesCorporate
Services
Total
Continuing
$000$000$000$000
- 5,948 - 5,948
Other Income137 9,780 - 9,917
Inter-segmental income- (929) 929 -
- 142 33 175
137 14,941 962 16,040
- (4,642) - (4,642)
- (532) - (532)
- (492) (166) (658)
Employee benefit expense(17) (5,664) (59) (5,740)
(5) (2,285) (604) (2,894)
115 1,326 133 1,574
- (182) -
(182)
115 1,144 133 1,392
The segment results for the six months ended 31 December 2015 are as follows:
Liabilities
Capital Expenditure
Profit/Loss before income tax
Income Tax
Profit/Loss after Income Tax
The segment assets and liabilities as at 31 December 2015 and capital expenditure for the 6 months ended 31 December 2015 are as
follows:
Assets
Sales of goods and interest and fee income
Total Income
Depreciation and amortisation
Interest and funding expense (external)
Net Other expenses (external)
Depreciation and amortisation
Interest and funding expense (external)
Net Other expenses (external)
Profit/Loss before income tax
Income Tax
Profit/Loss after Income Tax
The segment results for the twelve months ended 30 June 2016 are as follows:
Sales of goods and fee income
Interest Income
Total Income
Cost of Inventory
9

Asset
Management
Services
Rural ServicesCorporate
Services
Total
Continuing
$000$000$000$000
9 7,615 673 8,297
Assets - Non Current
- 4,158 273 4,431
9 11,772 946 12,728
- (7,193) (1,648) (8,841)
Liabilities - Non Current
- (2,782) (1,000) (3,782)
- (9,975) (2,648) (12,623)
- 290 - 290
2Share capital
GroupGroupGroup
Dec-16Jun-16Dec-15
6 Months12 months6 months
$000$000$000
Ordinary shares
Ordinary shares (fully paid)
Balance at beginning of period151,740 150,208 150,208
Issue Ordinary Shares- 1,532 1,532
Transfer due to exercise of options25 - -
Balance at end of period151,765 151,740 151,740
39 39 39
(25) - -
14 39 39
151,779 151,779 151,779
Number of shares issued and fully paid
Balance at beginning of period159,185 129,831 129,831
Issue of ordinary shares1,450 29,354 29,354
Balance at end of period160,635 159,185 159,185
Share options
Balance at beginning of year
Transfer due to issue of options
Balance at end of year
The segment assets and liabilities as at 30 June 2016 and capital expenditure for the 12 months ended 30 June 2016 are as follows:
Assets - Current
Liabilities Current
Capital Expenditure
The total number of shares on issue as at 31 December 2016 is 160,635,350(December 2015: 159,185,350).
Ordinary shares in the Company do not have a par value. All ordinary shares rank equally as to voting, dividends and
distribution of capital on liquidation.
10

3.Trade and other payables
GroupGroupGroup
Dec-16Jun-16Dec-15
6 Months12 months6 months
$000$000$000
Trade creditors5,014
5,099
5,759
Employee entitlements776
932
310
Other creditors and payables608
1,113
234
6,397
7,144
6,304
Classified as:
Current6,397
7,144
6,304
Non-current-
-
-
6,397 7,144 6,304
4Borrowings - Secured
GroupGroupGroup
Dec-16Jun-16Dec-15
6 Months12 months6 months
$000$000$000
Current
Borrowings - ANZ Bank517 517 475
Bonds1,000 600 600
Finance Leases377 429 421
1,894 1,546 1,496
Non Current
Borrowings - ANZ Bank2,371 2,535 2,768
Bonds550 1,000 1,000
Finance Leases230 247 353
3,151 3,782 4,121
The Group's Rural Services business had borrowings from The ANZ Bank Ltd which total $2,887,830 as at 31 December 2016
(December 2015:$3,243,101). The average interest rate on these bank borrowings was 6.18% per annum. These borrowings
were raised to settle the sale yards property assets acquired from the Parent. The loan facility is secured by registered first
mortgage over the sale yards and a First Charge General Security Agreement over the assets of New Zealand Farmers
Livestock Ltd. The loan facility agreements with the bank require certain financial covenants to be met, which included:
a) Interest Cover; and
b) Dividends; and
c) Reporting Requirements.
The Group has complied with these financial covenants for the six month period ended 31 December 2016. The loan is
repayable September 2019.
Allied Farmers Rural Ltd issued $1,000,000 worth of Bonds on 30 September 2014 with a maturity date of 30 September 2017.
The 2014 Bonds carry an interest rate of the one year interest rate swap mid-rate per annum as determined by Westpac New
Zealand Ltd on 30 September each year plus a margin of 6 percentage points. The current interest rate is 8.173% per annum.
The 2014 Bond is secured by way of a first charge General Security Agreement over all the assets and undertakings of Allied
Farmers Ltd and subsidiaries (excluding New Zealand Farmers Livestock Ltd and subsidiaries) and a specific security over the
shares held by Allied Farmers Rural Ltd in New Zealand Farmers Livestock Ltd plus a guarantee from Allied Farmers Ltd and
subsidiaries.
Allied Farmers Rural Ltd issued $600,000 of Bonds on 13 September 2013. The 2013 Bond contained a provision that for every
10 Bonds the Bondholders have the right to 58 ordinary shares in Allied Farmers Ltd. The 2013 Bonds matured and were repaid
in August 2016, partly from the proceeds of the 2016 Bond issued around the same time. The rights to ordinary shares that
have not yet been exercised are unaffected by the repayment of the Bond.
The security for the 2016 Bond is second ranking after the holders of the 2014 Bond, comprising a general security interest over
the assets of Allied Farmers Limited and its group charging subsidiaries (“Security Obligors”), a guarantee by the Security
Obligors in respect of the obligations of AFRL, and a specific security over the shares issued by NZ Farmers Livestock Limited
and held by AFRL.
Allied Farmers Rural Limited issued $550,000 of Bonds on 30 August 2016, with a maturity date of 30 September 2018, but with
an option for Allied Farmers Rural Limited to redeem in full on 30 September 2017. The interest rate on the 2016 Bond is 7.75%
per annum. If the 2016 Bond is redeemed on 30 September 2017, Allied Farmers Rural Limited will pay an additional 0.25% to
the holders on the face value of the 2016 Bonds they hold on the repayment date.
11

5
Group
GroupGroup
Dec-16
Jun-16Dec-15
6 Months
12 Months6 months
Freehold land$000
$000$000
Cost at beginning of year
2,019
2,019 2019
Additions
-
- -
Disposals
-
- -
Cost at end of year
2,019
2,019 2,019
Buildings
Cost at beginning of year
1,003
1,003 1,003
Additions
-
- -
Disposals
-
- -
Reclassification
-
- (116)
Cost at end of year
1,003
1,003 887
Accumulated depreciation at beginning of year
(176)
(115) (115)
Depreciation charged to income statement
(31)
(61) (31)
Reclassification
-
- -
Accumulated depreciation at end of year
(207)
(176) (146)
Buildings net book value
796
827 741
Motor vehicles
Cost at beginning of year
1,289
1,241 1,241
Additions
149
186 55
Disposals
(114)
(138) (77)
Cost at end of year
1,324
1,289 1,219
Accumulated depreciation at beginning of year
(624)
(334) (334)
Depreciation charged to income statement
(212)
(420) (221)
Disposals
73
130 88
Accumulated depreciation at end of year
(763)
(624) (467)
Motor vehicles net book value
561
665 752
Plant and equipment
Cost at beginning of year
266
269 269
Additions
20
13 9
Disposals
(1)
(6) (3)
Reclassification
-
(10) -
Cost at end of year
285
266 275
Accumulated depreciation at beginning of year
(135)
(116) (116)
Depreciation charged to income statement
(10)
(25) (15)
Disposals
3
6 (2)
Accumulated depreciation at end of year
(142)
(135) (133)
Plant and equipment net book value
143
131 142
4,631
4,577 4,400
(1,112)
(935) (746)
Total property, plant and equipment net book value
3,519
3,642 3,654
Cost Capitalised Finance Lease
1,324
1,289 1219
(763)
(624) (467)
Net Book Amount
561
665 752
Property Plant and Equipment
Property, plant and equipment cost at end of year
Vehicles include the following amounts where the Group is a leasee under a Capitalised Finance
Lease:
Accumulated Depreciation
Property, plant and equipment accumulated depreciation at end of year
12

6Intangible assets

Group
GroupGroup
Dec-16
Jun-16Dec-15
6 Months
12 Months6 months
$000
$000$000
Computer software
Cost at beginning of year
218
127 127
Additions
-
99 26
Reclassification
15
(8) -
Cost at end of year
233
218 153
Accumulated amortisation at beginning of year
(136)
(118) (118)
Amortisation charged to income statement
(22)
(26) (4)
Reclassification
-
8 -
Accumulated amortisation at end of year
(158)
(136) (122)
Computer software net book value
75
82 31
Goodwill
Cost at beginning of year
-
- -
Additions
100
- -
Cost at end of year
100
- -
Total intangibles175
82 31
7
Group
GroupGroup
Dec-16June-16Dec-15
$000$000$000
Redshaws Livestock Ltd original cost including legal expenses
232214
-
Additions
212
-
214
111822
455232236
1366868
111822
Investments accounted for using the equity method
The amounts recognised in the balance sheet are as follows;
Share of profit for year
Total
Working capital loan
The amounts recognised in the profit or loss are as follows;
Redshaws Livestock Ltd
13

8
Categories of related party relationships
(a)
(b)
(c)
Related party revenue / (expense)
(a)Key management personnel
Group
GroupGroup
Dec-16
Jun-16Dec-15
6 Months
12 Months6 months
$000
$000$000
Salaries and other short term benefits
182
271
126
Directors fees
71
137
67
14
197
21
Total key management personnel compensation
267
605
214
(b)
9Dividends
10Contingent Assets and Liabilities
Contingent Asset
Contingent Liabilities
11Events subsequent to balance date
There are no material events subsequent to 31 December 2016.
Related Party Transactions
Directors Retirement Allowance
Certain directors and key management of the Allied Farmers Limited Group of companies have completed livestock trading
transactions with the Group's subsidiary, New Zealand Farmers Livestock Ltd, which over the six months to December
2016 totalled $183,791( December 2015: $197,912 June 16: $462,155). These transactions took place on normal trading
terms.The commission earned by New Zealand Farmers Livestock Ltd for the six months to December 2016 was $9,485
(2015: $9,037 June 16: $24,385).
The Group conducts transactions with associated persons of related parties in the course of its rural activities, which take
place on normal trading terms and are on an arms length basis. The value of these transactions is not material.
Allied Farmers Rural Ltd issued Bonds on the 30 August 2016 with an interest rate of 7.75% p.a. and a maturity date of
30 September 2018. Some of the Bonds were subscribed to by a director of Allied Farmers Ltd. The Bonds carry a first
ranking security by way of General Security Agreement over the assets of Allied Farmers Ltd and is guaranteed by Allied
Farmers Ltd and Allied Farmers Investments Ltd and it's subsidiaries.(see note 4)
Dividends were declared during the period by subsidiary New Zealand Farmers Livestock Ltd to the minority shareholders of
$146,000 (Jun 2016: $344,000 ; Dec 2015: $112,000).
Overview of related party
transactions
All transactions with related parties are entered into in the ordinary course of business. No related party debts have been
written off or forgiven during the period.
Related party transactions are detailed by reference to the following
categories:
Group companies: all wholly owned subsidiaries of Allied Farmers Limited. For subsidiary companies of the Parent refer to
note 12.
Key management personnel: those persons having authority and responsibility for planning, directing and controlling the
activities of the Group, directly or indirectly, including all directors.
Other related parties: Other entities that may have directors who are also directors of the Company.
Other related parties
In 2007 Allied Farmers Ltd was granted a personal guarantee for a debt, secured by a first ranking mortgage over a parcel of
land. The land has recently been conditionally sold by the executors of the estate of the guarantor. Settlement of the sale is
subject to a condition requiring a boundary change to the land. The debt is subject to accruing interest to the date of
repayment, being the date of settlement of the sale of the land in the event that the sale becomes unconditional.
There are no contingent liabilities as at 31 December 2016.
14

12Group Companies
The subsidiary companies comprising the Group are:
Group
GroupGroup
Dec-16
Jun-16Dec-15
6 Months
12 Months6 months
Subsidiaries of the Parent
Allied Farmers Investments Limited
100%
100%100%
Allied Farmers Rural LimitedCorporate Services
100%
100%100%
ALF Nominees LimitedNon-trading
100%
100%100%
66%
66%66%
Subsidiaries of NZ Farmers Livestock Ltd
Farmers Meat Export LtdCalf Processing
100%
100%100%
Livestock Finance
100%
- -
34%
- -
Subsidiaries of Allied Farmers Investments Limited
Allied Farmers Property Holdings LimitedNon trading
100%100%100%
QWF Holdings LimitedNon trading
100%100%100%
Non trading
100%100%100%
Lifestyles of New Zealand Queenstown LimitedNon trading
100%100%100%
LONZ 2008 LimitedNon trading
100%100%100%
LONZ 2008 Holdings LimitedNon trading
100%100%100%
Subsidiaries of Allied Farmers Property Holdings Limited
UFL Lakeview LimitedNon trading
100%
100%100%
5M No. 2 Limited
100%
100%100%
All companies within the Group were incorporated in New Zealand, and have a balance date of 30 June.
Date of
Receivership
Matarangi Beach Estates Limited18 November 2010
100%
100%100%
Wholly owned companies of Allied Farmers Limited and that are in receivership or liquidation:
Interests held by Group
Property development and
investment
Subsequent to the date of the receivership of this company it has not been consolidated as the Parent Company no longer has
direct control over its affairs.
Clearwater Hotel 2004 Limited
Non trading
Asset management Services
Subsidiaries of Allied Farmers Rural Limited
New Zealand Farmers Livestock LtdRural Services
Redshaws Livestock Limited (Equity accounted)Rural Services
NZ Farmers Livestock Finance Ltd
Principal
activity
15

PricewaterhouseCoopers
188 Quay Street
Private Bag 92162
Auckland 1142
Share Registrar
PO Box 91976
Auckland 1142
Shareholder Enquiries
Link Market Services Limited
Wellington 6012Ph: 09 375 5998
Fax: 09 375 5990
Email: Lmsenquiries@linkmarketservices.com
PO Box 91976
Auckland 1142
www.alliedfarmers.co.nz
Takapuna
North Shore City 0740
Philip C Luscombe BAgSci (Hons)
199 Palmer Road
RD 28
COMPANY DIRECTORY
Directors of the Company
Garry C Bluett BMS, CA (Chairman)Auditors
Link Market Services Limited
8 St Leonards Road
2B/3 Clyde Quay Wharf
Te Aro
Wellington 6011
Registered Office of the Company
Hawera 4678
G Andrew McDouall BCA. Dip NZX
5 Fancourt Street
Karori
Mark Benseman BA (Hons)
Stratford 4352
Ph: 06 765 6199
Website
201 Broadway
Stratford 4332
Postal Address of the Company
PO Box 304
16

---

Allied Farmers Ltd
201 Broadway, Stratford, 4332
PO Box 304, Stratford 4352

Phone: 06 765 6199
Web: www.alliedfarmers.co.nz
Email: headoffice@alliedfarmers.co.nz


27 February 2017

INTERIM REPORT FOR THE HALF YEAR TO 31 DECEMBER 2016

The Directors of Allied Farmers Ltd (ALF) report an unaudited after tax profit of $0.48m for
the six months to 31 December 2016 (1HY2015 $0.62m). This is consistent with ALF’s Profit
Guidance announced on 9 February 2017.

The Rural Division reported a net profit before tax of $0.66m for the 6 month period. This was
behind the same period last year when a pretax profit of $1.24m was reported. The core
livestock business performed well, with turnover up 18% on the prior year’s first half and
livestock commissions up by 13%. All regions were ahead of last year with the new Northland
region performing well. The result from Redshaws Livestock which saw our shareholding
double to 34% during the period was in line with expectations. The new livestock financing
business commenced during the period focussing lending on dairy bulls with a result showing
income ahead of budget.

However, due to a combination of several factors such as a reduced market resulting in lower
tallies, less favourable US exchange rate and poorer skin prices, the calf processing export
sales for the six months to December were 15% lower than the comparative period, with a
reduced margin and this has impacted on the overall interim result.

The MyLiveStock web application continues to excel, with a 262% growth in page views in
2016 compared to 2015. The launch of the MyLiveStock app during the period has further
increased the reach and appeal of this new way of promoting livestock.

The Asset Management Services division which has now largely been wound down made a
small profit of $0.03 for the 6 month period (1HY:2015 $0.12m)

Corporate overhead costs totalled $0.26m (1HY:2015 $0.54m) for the half. Lower
administration and compliance costs resulting from the small shareholder sale programme

MJR-370048-16-76-V1:wu
completed in April 2016 significantly contributed to this reduction. $0.6m of maturing bonds
were replaced with a new $0.55m bond issue at a lower interest rate.

The Group continues to focus on expanding its livestock business with several new agents
contracted and more in discussion. For the second six months of the year dairy herd sales
contribute a significant proportion of the profit. Many of these dairy herd sales are contracted
well in advance of settlement. To date the forward sales herd contracts due for settlement
predominantly in May are significantly ahead of the same time last year, other livestock tallies
and values are tracking well, and the directors expect that the first half impact will be
recovered in the second half. While the processing business has always been subject to
annual market price movements, the directors are satisfied that the increase in livestock
turnover and the addition of new agents are promising signs for future growth.

Garry Bluett

Chairman