HY18 Results and Report

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

21 February 2018
ALLIED FARMERS - HY18 RESULTS AND HALF YEAR REPORT

The Directors of Allied Farmers Ltd (ALF) report an unaudited after tax profit of $0.25m for the six
months to 31 December 2017 (1HY2017 $0.48m). As reported to the market in November 2017, the
first quarter of the year started off with slower livestock sales. However livestock sales did recover with
the second quarter sales ahead of the same period last year.

The Rural Division reported a net profit before tax of $0.65m for the 6 month period. This was behind
the same period last year when a pre-tax profit of $0.85m was reported. The core livestock business
performed well, with turnover up 11% on the prior year’s first half and livestock commissions up by 5%.
However, the costs of expanding the operations in Northland and South Island meant that there were
costs incurred that have yet to show full returns. Redshaw Livestock, based on the East coast of the
North Island, (now 52% owned), generated a pre-tax profit which was above the same period last year.
NZ Farmers Livestock Finance made a positive contribution. As well as providing income from financing,
this business helps generate livestock commissions as we secure business that may have otherwise
been lost.

Due to a combination of several factors such as a reduced market resulting in lower tallies, less
favourable US exchange rate and low skin prices, the calf processing export sales for the six months
to December 2017 were 4.7% lower than the comparative period, with a reduced margin and this has
impacted on the overall interim result.

Corporate overhead costs totalled $0.33m (1HY:2017 $0.33m) for the half. During the period $1.0m of
bonds maturing in September were rolled over for a further four years on improved terms.

The Group’s focus on expanding its livestock business has resulted in growing the number of agents.
Opportunities for developing new sale-yards or getting access to existing yards are being explored.
While the calf processing business has always been subject to annual market price movements, the
directors are satisfied that this is a business that can provide opportunities and is looking to expand this
into other regions.

For the second six months of the year dairy herd sales contribute a significant proportion of the annual
profit. Many of these dairy herd sales are contracted well in advance of settlement. Although it is still
early in the season, to date the forward sales herd contracts due for settlement predominantly in May
are tracking behind the same time last year and it may be that the high volume of dairy herd sales that
the company experienced in the second half last year may not be repeated which would have a material
negative impact on the full year result. The directors and management are watching closely the
consequences of the mycoplasma bovis outbreak and the impact that could have on the company’s
operations.

Consistent with prior years, after completion of financial statements for the full year the Board will
determine whether a dividend will be paid.

Garry Bluett


Chairman

---

Allied Farmers Limited

Results for announcement to the market
(Unaudited)
Reporting Period 6 months to 31 December 2017
Previous Reporting Period 6 months to 31 December 2016

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ
10,033
6.6%
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
$NZ83
(70.5)%
Net profit (loss)
attributable to security
holders.
$NZ83
(70.5)%

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)

Net Tangible Assets per
security
$NZ 0.008 dollars $NZ 0.002 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 Policies7-8
Notes to the Financial Statements9-16
17
ALLIED FARMERS LIMITED
FINANCIAL REPORT - Unaudited
For the six months ended 31 December 2017
Company Directory

Allied Farmers Limited and Subsidiaries
For the six months ended 31 December 2017
Note
NoteDecembe
r
JuneDecember
6 months
Yea
r6 months
2017
20172016
$000
$000$000
Revenue
Sale of
goods
4,225
4,765 4,420
Interest income
336
240 33
Commission Income
6,125
12,2465,446
10,686
17,251 9,899
Other income
11
227 134
11
227 134
Total income
10,696
17,478 10,033
Ex
penses
Cost of inventor
y sold
3,681
4,090 3,719
Interest and fundin
g expense
388
496 282
Rental and operatin
g leases
72
126 54
Emplo
yee benefit expense
3,445
7,129 2,952
Depreciation and amortisation5
336
523 275
Other operatin
g expenses
2,446
2,7272,194
Total expenses
10,367
15,091 9,475
Profit before income tax329
2,387 558
Income tax expense
81
182 82
Profit for the
period248
2,229 476
248
2,229 476
83
1,552 281
165
677 195
Basic (cents per share)
0.05
0.970.17
Diluted (cents per share)
0.05
0.970.17
Statement of Profit or Loss and Other Comprehensive Income -
Unaudited
Total comprehensive income
The notes on pages 9 to 16 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 2017
Note
$000$000$000$000
Opening balance as at 1 July 2016151,779 (152,328) 654 105
Comprehensive income
Net profit for the 6 months ended 31 December 2016- 281 195 476
Total comprehensive income- 281 195 476
Transactions with owners
Share capital issued- - - -
Purchase of shares in NZ Farmers Livestock Ltd- - -
Dividends paid to Non Controllin
g Interests- - (146) (146)
Total transactions with owners- -
(146) (146)
Closin
g Balance as at 31 December 2016151,779 (152,047) 703 435
O
pening Balance as at 1 July 2016151,779 (152,328) 654 105
Comprehensive income
Net profit for the
year ended 30 June 2016- 1,552 677 2,229
Total comprehensive income- 1,552 677 2,229
Transactions with owners
Dividends paid to Non Controllin
g Interests- - (514) (514)
Purchase of shares in N Z Farmers Livestock Ltd- 20
(20) -
Total transactions with owners- 20
(534) (514)
Closing balance as at 30 June 2017151,779 (150,756) 797 1,820
Comprehensive income
- 83 165 248
Total comprehensive income- 83 165 248
Transactions with owners
- - 659 659
Total transactions with owners- - 659 659
Closing balance as at 31 December 2017151,779 (150,673) 1,621 2,727
The notes on pages 9 to 16 are an integral part of these financial statements.
Accumulated
losses
Non
Controlling
Share
Capital
Total
Equity
Comprehensive Income for the six months ended 31
December 2017
Recognition Redshaw Non Controlling Interests
3

Consolidated Balance Sheet - Unaudited
Allied Farmers Limited and Subsidiaries
As at 31 December 2017
NoteDecember
JuneDecember
2017
20172016
$000
$000$000
E
quity
Share capital2
151,779
151,779 151,779
Reserves
(150,673)
(150,756) (152,047)
1,106
1,023 (268)
Non Controlling Interests
1,621
797 703
Total e
quity (deficit)2,727
1,820 435
Liabilities
Current liabilities
Bank Overdraft
3,736
- 453
Trade and other pa
yables3
7,625
7,744 6,397
Borrowin
gs4
1,434
1,835 1,894
Taxation
-
140 2
Total current liabilities12,795
9,719 8,746
Non-current liabilities
Borrowings4
3,521
2,977 3,151
Total non-current liabilities3,521
2,977 3,151
Total liabilities16,316
12,696 11,897
Total liabilities and shareholders e
quity19,043
14,516 12,332
Assets
Current assets
Cash and cash equivalents
-
1,577 -
Trade and other receivables8
12,324
8,058 7,208
Prepa
yments
111
95 92
Inventor
y
526
18 340
Taxation
116
- -
Total current assets13,077
8,297 7,640
Non-current assets
Deferred tax asset
531
531 407
Investment
-
411 455
Advances
-
136 136
Propert
y, plant and equipment5
4,062
3,539 3,519
Intan
gible assets6
1,373
151 175
Total non-current assets5,966
4,768 4,692
Total assets19,043
14,516 12,332
Director
The notes on pages 9 to 16 are an integral part of these financial statements.
The Board of Directors of Allied Farmers Limited authorised these financial statements for
issue on 21 February 2018.
....................................................Director ......................................
4

Consolidated Statement of Cash Flows - Unaudited
Allied Farmers Limited and Subsidiaries
For the six months ended 31 December 2017
Note
December
JuneDecember
6 months
Year6 months
2017
20172016
$000$000$000
Cash Flows from Operating Activities
Cash was provided from:
Receipts from customers12,63816,7398,658
Interest Received336202-
12,97416,9418,658
Cash was applied to:
Payments to suppliers and employees(13,750) (13,191) (10,094)
Interest paid(388) (496) (282)
Taxation paid(266) (293) (231)
(14,405) (13,980) (10,607)
83,004 3,483 -
Payments for loans made8(5,939) (5,465) -
Net cash flows (used in)/ from operating activities(4,365) 979 (1,949)
Cash Flows from Investing Activitie
s
Cash was provided from:
Sale of property, plant and equipment
5
103 - -
Realisation of Investment- 77 -
Dividend received- - 25
103 77 25
Cash was applied to:
Investing in associate company
-
(212) (213)
-
(20) -
Loan to associate company
-
(68) (68)
Purchase of Subsidiaries
7

(225)
(100) -

5

(950)
(162) (245)
(1,175) (562) (526)
Net cash flows (used in)/ from investing activities(1,072) (485) (501)
Cash Flows from Financing Activitie
s
Cash was provided from:
Borrowings finance leases4
187
- -
Borrowings4
- 550 -
187550 -
Cash was applied to:
Borrowings4(143) (600) (333)
Repayment of finance principal- (831)
Dividends paid to non controlling interests- (514) (146)
(143) (1,945) (479)
Net cash flows (used in)/ from financing activities44 (1,395) (479)
Net (decrease)/ increase in cash and cash equivalents(5,393) (901) (2,931)
Cash and cash equivalents at beginning of year1,5772,478 2,478
Adjustment for Redshaw Livestock Limited acquisition as subsidiary80- -
Cash and cash equivalents at end of year(3,736) 1,577 (453)
Purchase of propert
y, plant and equipment and intangible assets
The notes on pa
ges 9 to 16 are an integral part of these financial statements.
Changes in operating assets and liabilities arising from cash
flow movements
Cash was provided/(applied) from
Receipts from repayment of loans and advances
Purchase of shares in New Zealand Farmers Livestock Limited
5

Reconciliation of Operating Cash Flows - Unaudited
Allied Farmers Limited and Subsidiaries
For the six months ended 31 December 2017
Reconciliation of net profit after tax for the year with cash
flow from operating activities:
Note
DecemberJuneDecember
6 monthsYear6 months
2017
2017 2016
$000$000$000
Net profit after tax for the period2482,229 476
Adjustments for:
Gain on settlement of liability(223)
Share of profit equity accounted
- (10) 11
(Profit)/Loss on sale of assets2 53 -
Depreciation and amortisation5336523 275
Interest paid capitalised- - -
Movement in impairment provisions on trade receivables828 22 -
Movement in deferred tax assets- (124) -
366241 286
Movement in working capital:
(Increase)/Decrease in trade and other receivables(2,180)(2,267) (1,698)
Increase/(Decrease) in payables and provisions(1,962)804 (674)
(Increase)/decrease in inventory(653)(17) (339)
(Increase) in tax payable(185)(11)
(4,980)(1,491) (2,711)
Net cash (outflows)/inflows from operating activities(4,365)979 (1,949)
The notes on pages 9 to 16 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 2017 - unaudited
GENERAL INFORMATION
The Group is a Tier 1 for profit entity in terms of XRBA1.
Significant transactions and events for the current period
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.
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.
These financial statements have been approved for issue by the Board of Directors on 21 February 2018.
The Board of Directors do not have the power to amend the financial statements after they have been issued.
Dividends
On the 28 November 2017 the directors declared a fully imputed dividend of $323,011 being 0.2 cents per share.
The dividend was paid on 19 January 2018.
Allied Farmers Limited and Subsidiaries is a rural services group, with its predominant activities comprising livestock
agency services, the procurement and processing of calves, the financing of livestock purchases, 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:
201 Broadway
Stratford
New Zealand 4332
Allied Farmers Limited is a public company listed on the New Zealand Stock Exchange Main Board (NZX code:
ALF).
BASIS OF PREPARATION
7

435,540
225,000
660,540
80,000
1,927,321
(6,812)
20,762
(1,455,771)
(530,278)
35,222
(16,906)
642,225
660,540
The directors consider that the values of assets and liabilities of Redshaw Livestock Ltd as at 1 July 2017 are at fair
value.
Fair Value as at 1 July 2017 of the 34% already acquired
Cash paid for 18% on 1 July 2017
Cash and cash equivalents
Receivables
Tax
Property, plant and equipment
Payables
Borrowings
Less non-controlling interests
Add:Goodwill
Net assets acquired
The Group has determined the fair value of the investment is $650,000. This represents no change of value of the
investment.
The
primary reasons for the business combination is to expand our livestock agency network.
Redshaw Livestock Limited contributed $254,332 in Revenue and $113,463 in profit to Allied Farmers Group in the
current period.
The goodwill is attributable to Redshaw Livestock Ltd's strong position and profitability in trading in the livestock
market and synergies expected to arise after the company’s acquisition of the new subsidiary. None of the goodwill
is expected to be deductible for tax purposes.
Acquisition-related costs of $2,000 will be included in other expenses in profit or loss in the reporting period ending
30 June 2018.
Purchase consideration
Business combinations
Redshaw Livestock Limited
On 1 July 2017 New Zealand Farmers Livestock Limited settled its obligation to purchase the third tranche of shares
in Redshaw Livestock Ltd . From that date NZ Farmers Livestock Ltd will own 52% of the shares on issue of
Redshaw Livestock Ltd. For the years 2016 and 2017 the investment in Redshaws Livestock Ltd has been
accounted for using the equity accounting process. For the half year to 31 December 2017 Redshaw Livestock
Limited has been consolidated into the Group accounts.
Variation to bond terms
The one million first ranking $1 bonds issued by Allied Farmers Rural Limited on 9 October 2014 matured on 30
September 2017. Allied Farmers Rural Limited and all of the holders of these bonds agreed to extend the maturity
date of the bonds to 30 September 2021 (see note 4).
The determined values of the fair value of assets and liabilities of Redshaw Livestock Ltd as at the date of
acquisition are as follows:
8

Notes to the Financial Statements
For the six months ended 31 December 2017 - unaudited
1.Financial information on segments of the business
Asset
Management
Services
Livestock
Services
Corporate Total
Continuing
$000$000$000$000
- 4,225 - 4,225
Commission Income- 6,125 - 6,125
Other Income11 - - 11
- 336 - 336
11 10,685 - 10,696
- (336) - (336)
- (334) (54) (388)
Rental and operating Leases (external)- (71) (1) (72)
Employee benefit expense- (3,425) (20) (3,445)
(1) (5,871) (255) (6,126)
10 648 (330) 329
- (81) - (81)
10 568 (330) 248
Asset
Management
Services
Livestock
Services
Corporate Total
Continuing
$000$000$000$000
36 18,892 115 19,043
- (14,429) (1,887) (16,316)
- 466 - 466
Profit/Loss after Income Tax
The segment assets and liabilities as at 31 December 2017 and capital expenditure for the 6 months ended 31 December 2017 are as
follows:
Assets
Liabilities
Capital Expenditure
The segment results for the six months ended 31 December 2017 are as follows:
Sales of goods
Total Income
Depreciation and amortisation
Interest Income
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 manages the assets previously 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. The Asset Management Services activities were completed during the year
with the realisation of the remaining assets.
The Livestock Services segment predominantly relates to livestock sale activities, the financing of livestock sales, and calf
procurement, processing and sales. The Livestock activities are influenced by seasonality. Livestock Sales are normally
stronger in the Autumn season and calf sales traditionally occur mainly in the first half of the financial year.
Corporate activities comprise the corporate activities of the Group including the remaining activities of the holding company
Allied Farmers Rural Limited.
Interest and funding expense (external)
Net Other expenses (external)
Profit/Loss before income tax
Income Tax
9

Asset
Management
Services
Livestock
Services
Corporate Total
Continuing
$000$000$000$000
- 4,765 - 4,765
Commission Income12,246 12,246
Other Income32 91 104 227
- 240 - 240
32 17,342 104 17,478
- (4,090) - (4,090)
- (523) - (523)
- (359) (137) (496)
Rental and operating leases- (124) (2) (126)
Employee benefit expense- (7,090) (39) (7,129)
(2) (2,455) (270) (2,727)
30 2,701 (344) 2,387
Inter-segmental transfers(1,816) 1,816 -
- (158) - (158)
30 727 1,472 2,229
Asset
Management
Services
Livestock
Services
Corporate Total
Continuing
$000$000$000$000
32 8,841 875 9,748
Assets - Non Current- 4,768 - 4,768
32 13,609 875 14,516
- (8,119) (1,600) (9,719)
Liabilities - Non Current- (2,427) (550) (2,977)
- (10,546) (2,150) (12,696)
Asset
Management
Services
Livestock
Services
Corporate Total
Continuing
$000$000$000$000
32 9,999 2 10,033
32 9,999 2 10,033
- (275) - (275)
- (350) (68) (418)
Rental and operating expense(53) (1) (54)
Employee benefit expense(2,932) (20) (2,952)
(1) (5,539) (236) (5,776)
31 850 (323) 558
- (193) 193 -
- (82) - (82)
31 575 (130) 476
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 30 June 2017 and capital expenditure for the 12 months ended 30 June 2017 are as follows:
Assets - Current
Liabilities Current
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
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 2017 are as follows:
Sales of goods
Interest Income
Total Income
Cost of Inventory
Inter-segmental income
10

Asset
Management
Services
Livestock
Services
Corporate Total
Continuing
$000$000$000$000
33 12,177 122 12,332
- (9,630) (2,267) (11,897)
- 169 - 169
2Share capital
GroupGroupGroup
Dec-17Jun-17Dec-16
6 Months 12 months 6 months
$000$000$000
Ordinary shares
Ordinary shares (fully paid)
Balance at beginning of period151,779 151,740 151,740
Issue Ordinary Shares- - -
Transfer due to exercise of options- 39 25
Balance at end of period151,779 151,779 151,765
- 39 39
- (39) (25)
- - 14
151,779 151,779 151,779
Number of shares issued and fully paid
Balance at beginning of period161,505 159,185 159,185
Issue of ordinary shares- 2,320 1,450
Balance at end of period161,505 161,505 160,635
3.Trade and other payables
GroupGroupGroup
Dec-17Jun-17Dec-16
6 Months 12 months 6 months
$000$000$000
Trade creditors5,550
6,134
5,014
Employee entitlements1,287
1,412
776
Other creditors and payables788
198
608
7,625
7,744
6,397
The total number of shares on issue as at 31 December 2017 is 161,505,350 (December 2016: 160,635,3650).
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.
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
Share options
Balance at beginning of year
Transfer due to issue of options
Balance at end of year
Capital Expenditure
11

4Borrowings - Secured
GroupGroupGroup
Dec-17Jun-17Dec-16
6 Months12 months 6 months
$000$000$000
Current
Borrowings - ANZ Bank517 517 517
Bonds550 1,000 1,000
Finance Leases367 318 377
1,434 1,835 1,894
Non Current
Borrowings - ANZ Bank2,023 2,199 2,371
Bonds1,000 550 550
Finance Leases498 228 230
3,521 2,977 3,151
The Group's Rural Services business had borrowings from The ANZ Bank Ltd which total $2,540,097 as at 31 December 2017
(December 2016:$2,887,830). The average interest rate on these bank borrowings is 6.97% 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 2017. The loan is
repayable September 2019.
Allied Farmers Rural Ltd has extended the maturity date of $1,000,000 of Bonds from 31 August 2016 to 30 September 2021.
The 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 7.3% per annum.
The 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 Limited issued $550,000 of Bonds on 29 August 2016. The Bonds are secured by way of a second charge
General Security Agreement over all of the assets and undertakings of Allied Farmers Limited and subsidiaries excluding New
Zealand Farmers Livestock Limited and subsidiaries and a specific security over the shares held by Allied Farmers Rural
Limited in New Zealand Farmers Livestock Limited plus a guarantee from Allied Farmers Limited and subsidiaries. The bonds
have an interest rate of 7.75% and mature on 30 September 2018. There are no specific financial covenants.

12

5
Group
GroupGroup
Dec-17
Jun-17Dec-16
6 Months
12 Months 6 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
1,030
1,003 1,003
Additions
-
27 -
Disposals
-
- -
Reclassification
-
- -
Cost at end of year
1,030
1,030 1,003
Accumulated depreciation at beginning of year
(237)
(176) (176)
Depreciation charged to income statement
(31)
(61) (31)
Reclassification
-
- -
Accumulated depreciation at end of year
(268)
(237) (207)
Buildings net book value
762
793 796
Motor vehicles
Cost at beginning of year
1,412
1,289 1,289
Additions
694
435 149
Reclassifications
-
14
Disposals
(103)
(326) (114)
Cost at end of year
2,003
1,412 1,324
Accumulated depreciation at beginning of year
(835)
(624) (624)
Depreciation charged to income statement
(247)
(394) (212)
Disposals
-
183 73
Accumulated depreciation at end of year
(1,082)
(835) (763)
Motor vehicles net book value
921
577 561
Plant and equipment
Cost at beginning of year
305
266 266
Additions
226
45 20
Disposals
-
(6) (1)
Reclassification
-
- -
Cost at end of year
531
305 285
Accumulated depreciation at beginning of year
(155)
(135) (135)
Depreciation charged to income statement
(16)
(20) (10)
Disposals
-
- 3
Accumulated depreciation at end of year
(171)
(155) (142)
Plant and equipment net book value
360
150 143
5,583
4,766 4,631
(1,521)
(1,227) (1,112)
Total property, plant and equipment net book value
4,062
3,539 3,519
Cost Capitalised Finance Lease
2,003
1,412 1324
(1,082)
(835) (763)
Net Book Amount
921
577 561
Property, plant and equipment accumulated depreciation at end of year
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
Accumulated Depreciation
13

6Intangible assets
Group
GroupGroup
Dec-17
Jun-17Dec-16
6 Months
12 Months 6 months
$000
$000$000
Computer software
Cost at beginning of year
225
218 218
Additions
30
7 -
Reclassification
-
- 15
Cost at end of year
255
225 233
Accumulated amortisation at beginning of year
(174)
(136) (136)
Amortisation charged to income statement
(42)
(47) (22)
Reclassification
(12)
9 -
Accumulated amortisation at end of year
(228)
(174) (158)
Computer software net book value
27
51 75
Goodwill
Cost at beginning of year
100
- -
Additions
1,246
100 100
Cost at end of year
1,346
100 100
Total intangibles1,373
151 175
7
Group
GroupGroup
Dec-17
June-17Dec-16
$000
$000$000
Redshaws Livestock Ltd original cost including legal expenses
411
232232
Additions
225
212212
Dividends received to year end(69) (69)
(25)
Net cost of investment
567
375419
Fair value assessment
708
435434
38
(38) -
59
511
204
136136
113
511
70
- -
937
- -
125
- -
27
- -
1,246
- -
1,057
- -
Investments accounted for using the business combination method previously accounted for
using the equity method
The amounts recognised in the balance sheet are as follows;
Share of profit for period
Working capital loan
The amounts recognised in the financial statements for the first time are as
follows;
Fair value adjustment reversal recognised in Other operating
expenses in Statement of profit or loss and other comprehensive
Statement of Profit and Loss and Other Comprehensive Income
Balance Sheet
Cash and cash equivalents
Trade and other receivables
Inventory
Trade and other payables
Intangible assets
Property, plant and equipment
14

8 Trade and other receivables
Trade receivables livestock (gross)
7,315
5,9864,794
5,038
2,0742,422
Provision for impaired assets
(30)
(2) (8)
Trade receivables (net of provision)
12,324
8,058
7,208
Prepayments
111
95
92
12,435
8,153
7,300
Aging of Past Due Receivables that are not impaired
315
301 447
94
93 73
106
104 49
515 498 569
It is expected that all trade receivables will be collected within 12 months of the balance date.
9
Categories of related party relationships
(a)
(b)
(c)
Related party revenue / (expense)
(a)Key management personnel
Group
GroupGroup
Dec-16
Jun-17Dec-16
6 Months
12 Months 6 months
$000
$000$000
Salaries and other short term benefits
173
309
182
Total key management personnel compensation
173
309
182
7
211 14
(b)
10 Contingent Assets and Liabilities
11 Events subsequent to balance date
There are no material events subsequent to 31 December 2017.
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 2017 totalled $148,277 in sales, $190,063 in purchases and $10,120 in commission, resulting in gross
transactions of $348,460 ( December 2016: $183,791 June 17: $504,534). These transactions took place on normal
trading terms.The commission earned by New Zealand Farmers Livestock Ltd for the six months to December 2017 was
$9,485 (2016: $9,485 June 17: $33,829).
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.
Overview of related party
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
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
There are no contingent assets or liabilities as at 31 December 2017.
Directors Retirement Allowance
Related Party Transactions
Total Past Due Receivables
Trade receivables finance (gross)
1-30 days
31-60 days
61-90 days
15

12 Group Companies
The subsidiary companies comprising the Group are:
Group
GroupGroup
Dec-16
Jun-17Dec-16
6 Months
12 Months 6 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%
Allied Farmers (New Zealand) 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%
100%100%
52%
34%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.
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
16

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
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
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
17