HY20 Interim Results Announcement

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

26 February 2020

HY20 RESULTS AND HALF YEAR REPORT

The Directors of Allied Farmers Limited (ALF) have pleasure in reporting an unaudited after-tax
profit of $1.18 million for the six months ended 31 December 2019. The result is very similar to
the result for first half of the 2019 financial year of $1.17million.
The company’s pre-tax operating result is much improved on last year, up 19%. However, the
group incurred higher discretionary corporate expenses as it has commenced the implementation
of a review, reinforcement, and improvement of its corporate and governance structures. This
has included the start of a process to comprehensively review systems and digital infrastructure,
seeking avenues to reduce risk, improve processes, and raise productivity. In addition, the
company has sought to improve its focus on health and safety, and address some one-off issues
including resolution of an outstanding tax issue (see NZX announcement 5 December 2019).
ALF’s cash position and cash flow remain sound, enabling the payment of a dividend in January
2020. The company remains within its banking covenants and retains good relationships with its
funders.
The result achieved in the last six months would not have been possible without the skills and
dedication of our staff. The Board would once again like to acknowledge the contribution of all
our staff. Their continuing efforts are important in helping our food producing clients to meet the
challenges that face them on a daily basis.
ALF subsidiary New Zealand Farmers Livestock Limited (NZFL), experienced better results across
all of its business divisions, continuing a multi-year trend of improved business performance.
During the six-month period, the livestock agency business experienced a slow start, but towards
the end of the period experienced a strong upturn in livestock trading momentum. The
mycoplasma bovis outbreak cast uncertainty over some parts of the livestock trading business,
but its effect is gradually reducing over time.
By far the bigger factor driving livestock trading is weather and market related factors. In spite of
these challenges, the strength and experience of NZFL’s agent network, staff and business model
enabled it to achieve a positive result.
The veal processing and trading business also produced an improved result, with better pricing
and some improvement in volume.
NZFL’s finance operation is an important part of our offering to our clients. The provision of
financing enhances NZFL’s ability to assist farmer clients in the management of their cash flow.

Risk is mitigated by largely lending to farmer clients with whom NZFL’s agents already have a
strong relationship and understanding of their business.
NZFL is committed to a strategy of providing a superior service to its food producing clients, to
assist them to be successful in the operation of their own businesses. NZFL remains focused on
working with farmers for farmers, and to this end is looking to grow its livestock agency business
through the recruitment of new agents, implementation of technology improvement, and
selected development of new yard operations. A range of partnering continues to deliver
effectively, and NZFL works to further develop such opportunities.
The MyLiveStock web platform and App is an important part of that strategy and is valued by
clients. Further development of this platform will improve this increasingly valuable client tool.
In addition, ALF will continue to investigate opportunities to expand its presence in the wider
agricultural sector and is seeking agribusiness opportunities outside of its current traditional lines
of business, which assist farmers to meet the challenges they face on a day-to-day basis.
The start to the second half of the financial year has seen some deterioration in livestock trading
conditions. The presence of drought in some parts of the country, plus the disruption to the food
export trade caused by the outbreak of Covid-19 have seen some reduction in confidence
amongst food producing clients. Given the uncertainties and fast moving nature of these factors,
further guidance for the second half of the financial year will be provided as the operating
environment becomes clearer. ALF is well placed to meet these challenges given the strength and
positioning of our business.
The livestock financing operation is on an encouraging growth trajectory. ALF believes that with
traditional lenders showing less support for New Zealand pastoral food producers, there are
significant opportunities to grow and nurture an alternative lending organization.
ALF takes much pride in being a New Zealand owned company, working with New Zealand
farmers, who are vital in the global food chain and are known for producing high quality food with
care and responsibility.

Yours faithfully,
Allied Farmers Limited

Mark Benseman, Chairperson

---

ContentsPage
Consolidated Statement of Profit or Loss 2
Consolidated Statement of Changes in Equity3
Consolidated Balance Sheet4
Consolidated Statement of Cash Flows5
Reconciliation of Cash Flows6
Statement of Accounting Policies7 - 9
Notes to the Consolidated Financial Statements10 - 14
Company Directory14
ALLIED FARMERS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
For the half year ended 31 December 2019
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

Allied Farmers Limited and Subsidiaries
For the 6 months ended 31 December 2019
Note
December
December
2019
2018
Note$000
$000
Revenue
Sale of goods
7,839
7,057
Interest income
509
473
Commission Income
6,255
5,632
Total Revenue
14,603
13,162
Other income
45
17
Total income
14,648
13,179
Expenses
Cost of inventory sold
6,215
5,637
Interest and funding expense
390
413
Rental and operating leases
1
60
Employee benefit expense
3,978
3,613
Depreciation and amortisation
378
333
Other operating expenses
2,335
1,781
Total expenses
13,297
11,837
Profit before income tax1,351
1,342
Income tax expense
2(170)
(169)
1,181
1,173
724
815
457
358
Basic (cents per share)4.05 5.05
4.05 5.05
The notes on pages 10 - 14 are an integral part of these consolidated financial
statements.
Total earnings per share attributable to the equity holders of the Parent Company:
Diluted (cents per share)
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Total comprehensive income
Profit Attributable to:
Owners of the Parent
Non-Controlling Interests
2
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

Consolidated Statement of Changes in Equity
Allied Farmers Limited and Subsidiaries
For the 6 months ended 31 December 2019
$000$000$000$000 $000
Opening balance as at 1 July 2018151,779 (149,544) 2,235 1,231 3,466
Comprehensive income
Net Profit for the year ended 30 June 2019- 1,258 1,258 743 2,001
Transactions with owners
Dividends paid- (323) (323) (593) (916)
Sale of Shares in NZ Farmers Livestock Limited- - - (22) (22)
AFL Purchase of Small Parcels of Shares(261) - (261) - (261)
AFL Shares Issued1,500 - 1,500 - 1,500
Total transactions with owners1,239 935 2,174 128 2,302
Closing balance as at 30 June 2019153,018 (148,609) 4,409 1,359 5,768
Comprehensive income
Net Profit for the 6 months ended 31 December 2019- 724 724 457 1,181
Transactions with owners
Dividends paid- (357) (357) (228) (585)
Total transactions with owners- 367 367 229 596
Closing balance as at 31 December 2019153,018 (148,242) 4,777 1,588 6,365
Accumulated
losses
Non
Controlling
Interests
Share
Capital
Total
Equity
The notes on pages 10 - 14 are an integral part of these consolidated financial statements.
Parent
Equity
Subtotal
3
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

Consolidated Balance Sheet
Allied Farmers Limited and Subsidiaries
As at 31 December 2019
Note December
June
2019
2019
$000
$000
Equity
Share capital3
153,018
153,018
Reserves
(148,242)
(148,609)
Equity attributable to owners of the Parent
4,777
4,409
Non Controlling Interests
1,588
1,359
Total equity6,365
5,768
Liabilities
Current liabilities
Trade and other payables4
8,784
12,923
Finance receivables borrowings
1,350
1,500
Borrowings5
3,646
909
Taxation2
18
55
Total current liabilities13,798
15,387
Non-current liabilities
Borrowings5
2,640
2,884
Lease Liabilities6
580
-
Total non-current liabilities3,220
2,884
Total liabilities17,018
18,271
Total liabilities and shareholders equity23,382
24,039
Assets
Current assets
Cash and cash equivalents
1,253
2,301
Trade and other receivables7
9,456
11,449
Finance receivables7
5,754
4,710
Inventory
808
197
Prepayments
136
2
Total current assets17,407
18,659
Non-current assets
Investments
5
5
Property, plant and equipment
3,709
3,839
Intangible assets and Goodwill
883
764
Right of Use Assets6
572
-
Deferred tax asset
806
772
Total non-current assets5,975
5,380
Total assets23,382
24,039
DirectorDirector
Mark BensemanMarise James
The notes on pages 10 - 14 are an integral part of these consolidated financial statements.
The Board of Directors of Allied Farmers Limited authorised these financial statements for issue
on 26 February 2020
4
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

Consolidated Statement of Cash Flows
Allied Farmers Limited and Subsidiaries
For the 6 months ended 31 December 2019
December
December
20192018
$000$000
Cash Flows from Operating Activities
Cash was provided from:
Receipts from customers
Receipts from customers16,132 14,045
Interest received509 473
16,641
14,518
Cash was applied to:
Payments to suppliers and employees
Payments to suppliers and employees(17,442) (13,252)
Interest paid
Interest paid(390) (413)
Taxation paid(241) (265)
(18,073)
(13,931)
Net cash flows from operating activities
(1,433)
587
Cash Flows from Investing Activities
Cash was provided from:
Cash was applied to:
Decrease (Increase) in finance receivables NZ Farmers Livestock Finance Ltd(1,044) (1,990)
Acquisition of subsidiary/investment net of cash acquired- (5)
Assets purchased
Purchase of intangibles, property, plant and equipment(330) (147)
Net cash flows (used in) investing activities(1,374) (2,142)
Cash Flows from Financing Activities
Cash was provided from:
Drawdown of livestock trading borrowings977 -
Drawdown of finance receivables borrowings1,750 3,850
Increase/(decrease) in vehicle finance borrowings- 146
2,727 3,996
Cash was applied to:
Borrowings
Repay livestock trading borrowings- (439)
Repayment of vehicle finance borrowings(235) (234)
Repayment of finance receivables borrowings(149) -
Dividends paid(585) (163)
(969)
(837)
Net cash flows from / (used in) from financing activities1,758 3,160
Net increase in cash and cash equivalents(1,048) 1,605
Cash and cash equivalents at beginning of year2,301 569
Cash and cash equivalents at end of year1,253 2,174
The notes on pages 10 - 14 are an integral part of these consolidated financial statements.
5
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

Reconciliation of Operating Cash Flows
Allied Farmers Limited and Subsidiaries
For the 6 months ended 31 December 2019
Reconciliation of net profit after tax for the year with cash
flow from operating activities:DecemberDecember
2019
2018
$000$000
Net profit after tax for the period1,181 1,173
Adjustments for:
Loss on sale of assets(31) -
Depreciation and amortisation.378325
Movement in impairment provisions on trade receivables- 8
Movement in deferred tax assets(34) -
313333
Movement in working capital:
(Increase)/decrease in trade and other receivables1,8601,229
Increase/(decrease) in payables and provisions(4,139)(1,269)
(Increase)/decrease in inventory(611)(783)
Increase/(decrease) in tax payable(37)(96)
(2,928)(919)
Net cash (outflows)/inflows from operating activities(1,433)587
6
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

Statement of Accounting Policies
Allied Farmers Limited and Subsidiaries
For the 6 months ended 31 December 2019 - unaudited
GENERAL INFORMATION
The Group is a Tier 1 for profit entity in terms of XRBA1.
The accounting policies applied are consistent with those as described in the annual financial statements for the year
ended 30 June 19, except for the effects of applying NZ IFRS 16 Leases as set out below.
Taxes on income in interim periods are accrued for using the tax rate that would have been applicable to expected
total annual profit or loss.
Allied Farmers Limited is a public company listed on the New Zealand Stock Exchange Main Board (NZX code: ALF).
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.
These financial statements have been approved for issue by the Board of Directors on 26 February 2020.
201 Broadway
Stratford
New Zealand 4332
The Board of Directors do not have the power to amend the financial statements after they have been issued.
Allied Farmers Limited and Subsidiaries ('the Group") is a rural services group, with its predominant activities
comprising livestock agency services, the procurement and processing of calves and the financing of livestock
purchases.
Allied Farmers Limited ("the Parent Company") is a limited liability company, incorporated and domiciled in New
Zealand. The Parent Company's registered address is:
Where necessary, the amounts shown for the previous periods have been reclassified to facilitate comparison.
These financial statements are prepared in New Zealand dollars ($), which is the company's functional currency.
Amounts have been rounded to the nearest thousand.
BASIS OF PREPARATION
7
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

$000
805
(185)
Lease Liabilities at 1 July 2019620
1 July 2019
The recognised right-of-use assets relate to the following types of assets:
$000
Properties620
Used hindsight when determining the lease term, particularly in relation to extending leases;
The definition of a lease under NZ IFRS 16 was applied only to contracts entered into or changed on or
after 1 July 2019. For contracts entered into before the transition date the Group relied on its assessment
made applying NZ IAS 17 Leases.
A reconciliation of operating lease commitments at 30 June 2019 to the lease liability recognised at 1 July 2019 is as
follows:
Discounted using the lessee's incremental borrowing rate at the date of initial application
NZ IFRS 16 Leases
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected. There have been no
changes to the areas of estimation uncertainty and critical judgement in applying accounting policies that have the
most significant effect on the amount recognised in the financial statements from those appearing in the Annual
Report for the year ended 30 June 2019, other than as described in recognising NZIFRS 16 below.
For leases of low-value assets the Group has not recognised a right of use asset and lease liability and
has accounted for the lease expense on a straight line basis over the remaining lease term;
Exclusion of initial direct costs from minimising the right-of-use asset at the date of initial application;
The Group used the following practical expedients when applying NZ IFRS 16 for the first time:
The new standard has been applied using the modified retrospective approach, with the cumulative effect of adopting
NZ IFRS 16 being recognised in equity as an adjustment to the opening balance of retained earnings for the current
period. Comparative figures for the year ended 30 June 2019 are not restated but instead continue to reflect the
accounting policies under NZ IAS 17 Leases.
On adoption of NZ IFRS 16, the Group recognised lease liabilities as the present value of the remaining lease
payments, discounted at the Group's incremental borrowing rate as at 1 July 2019. The incremental borrowing rate
applied to the lease liabilities as at 1 July 2019 was 6.91%. This rate has been applied across all lease categories.
Operating lease commitments disclosed at 30 June 2019
The preparation of financial statements requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
NZ IFRS 16 is effective for the annual period beginning 1 July 2019. The adoption of this new standard has resulted
in the Group recognising a right-of-use asset and related lease liability in connection with all former operating leases.
Use of Estimates and Judgements
New Standards and Interpretations
8
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

The adoption of NZ IFRS 16 affected the following items in the balance sheet on 1 July 2019:
Increase/(Decrease)
$000
Right-of-use Assets620
Lease Liabilities620
The net impact on retained earnings on 1 July 2019 was a decrease of nil.
31 December
Consolidated Statement of Comprehensive Income effect2019
$000
Other operating expenses(62)
Depreciation47
Interest22
Measurement and Recognition of Leases
Lease payments included in the measurement of the lease liability are made up of:
Variable lease payments that are based on an index or a rate; and
Lease assets are measured at cost comprising the following:
The amount of the initial mesurement of lease liability;
Any direct costs; and
Restoration costs.
Critical Accounting Judgement
Policy Applicable before 1 July 2019
The Group also leases vehicles where the Group has all the risks and rewards of ownership. These continue to be
classified as finance leases for which the accounting policies applied are consistent with those as described in the
annual financial statements for the year ended 30 June 2019.
When compared to the accounting policies applied in the prior comparative period, the adoption of NZ IFRS 16
Consolidated Statement of Comprehensive Income for the six months ended 31 December 2019 is summarised in
the table below.
For any new contracts entered into on or after 1 July 2019, the Group considers whether a contract is, or continues, a
lease if the contract conveys the right to control the use of an asset for a period of time in exchange for
consideration.
At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the balance sheet.
The Group measures the lease liability at the present value of the lease payments unpaid at that date, discounted
using the interest rate implicit in the lease if that rate is readily available, or the Group's incremental borrowing rate is
the rate that the Group would have to pay to borrow the funds necessary to obtain a right of use asset of similar value
in a similar economic environment with similar terms and conditions.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is
remeasured to reflect any reassessment or modification. When the lease liability is remeasured, the corresponding
adjustment is reflected in the right-of-use asset.
Any lease payments made at or before the commencement date less any lease incentives received;
When the Group has the option to extend a lease, management used its judgement to determine whether or not an
option would be resonably certain to be exercised. Management considers all facts and circumstances, including
past performance, extension terms and strategic direction for the Group (particularly with property leases).
Prior to 1 July 2019, leases of assets were classified as operating leases. Payments made under operating leases
were charged to profit or loss as a straight line basis over the period of the lease.
Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
Payments or penalties for terminating the lease, if the lease term reflects the lessee exercising that
option.
Other than the reclassification of operating lease payments to financing activities, NZ IFRS 16 had no other
significant impact to the cash flow statement.
9
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

Notes to the Financial Statements
For the 6 months ended 31 December 2019 - unaudited
1.Financial information on segments of the business
Livestock
Services Corporate
Total
Continuing
$000 $000 $000
7,839 - 7,839
Commission Income6,255 - 6,255
Other Income45 - 45
506 4 510
14,645 4 14,648
(6,215) - (6,215)
(378) - (378)
(353) (37) (390)
Rental and operating Leases (external)- (1) (1)
Employee benefit expense(3,945) (33) (3,978)
(1,974) (362) (2,335)
1,778 (428) 1,351
(170) - (170)
1,608 (428) 1,181
Livestock
Services Corporate
Total
Continuing
$000$000$000
15,066 2,341 17,407
5,975 - 5,975
21,041 2,341 23,382
(13,682) (116) (13,798)
(2,220) (1,000) (3,220)
(15,902) (1,116) (17,018)
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.
Corporate activities comprise the corporate activities of the Group including the remaining activities of the holding company Allied Farmers
Rural Limited.
The segment results for the six months ended 31 December 2019 are as follows:
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 2019 for the 6 months ended 31 December 2019 are as follows:
Sales of goods
Interest Income
Total Income
Cost of Inventory sold
Depreciation and amortisation
Liabilities
Current Assets
Non Current Assets
Assets
Current Liabilities
Non Current Liabilities
10
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

Livestock
Services Corporate
Total
Continuing
$000$000$000
7,057 - 7,057
5,632 - 5,632
473 - 473
17 - 17
13,179 - 13,179
(5,637) - (5,637)
(325) - (325)
(360) (53) (413)
Rental and operating expense(59) (1) (60)
Employee benefit expense(2,908) (47) (2,955)
(2,388) (58) (2,447)
1,501 (159) 1,342
- - -
(169) - (169)
1,333 (159) 1,173
Livestock
Services Corporate
Total
Continuing
$000 $000 $000
16,752 1,078 17,831
5,459 - 5,459
22,211 1,078 23,289
(14,772) (766) (15,538)
(2,275)
(1,000)(3,275)
(17,047) (1,766) (18,813)
2
Taxation
Sale of goods
Commission Income
Interest Income
Other Income
Total Income
Cost of Inventory Sold
The segment assets and liabilities as at 31 December 2018 are as follows:
Current Assets
Non Current Assets
Assets
Depreciation and amortisation
Interest and funding expense (external)
Net Other expenses (external)
Profit/Loss before income tax
Inter-segmental income
Income Tax
Profit/Loss after Income Tax
Current Liabilities
Non Current Liabilities
Liabilities
On the evening of 4 December 2019 the group received communication from the Commissioner of Inland Revenue that she has declined
a request to exercise her discretion to issue amended income tax assessments in respect of each of the 2016, 2017, 2018 income tax
returns in relation to payments that were incorrectly classified as subvention payments.
In January 2016 Allied Farmers Rural Limited purchased a block of shares in its subsidiary NZ Farmers Livestock Limited, resulting in it
returning to the 66.66% common ownership that it had in August 2014. Based on advice received at the time, subvention payments were
recommenced to Allied Farmers Limited from NZ Farmers Livestock Limited in 2016.
However, because commonality of ownership was not maintained at all times from the time the losses were incurred until the
recommencement of the subvention payments, the payments should not have been treated as subvention payments.
The Commissioner was asked to allow a correction of the position by permitting a late loss offset election to deal with the resulting
additional taxable income to NZ Farmers Livestock Limited where the subvention payments are removed from its taxable income
calculation. The request was declined.
Allied Farmers Limited tax advisors consider that after discussion and clarification of the key issues, the Commissioner may reverse her
initial decision and allow the late offset request. At this stage no formal assessment has been received by NZ Farmers Livestock Limited.
An assessment can be disputed, as can a decision to deny an actual request to offset the losses. Accordingly no liability has been
recognised.
An assessment to NZFLL denying the subvention payment deductions for the 2016 - 2018 income years would be tax of $1,193,948, plus
interest and penalties (late payment and, if applicable, shortfall penalties).
Group unrecognised deferred tax assets comprised of unused tax losses as at 30 June 2019 total $43,881,255 gross (June 2018:
$43,530,255).
As at 31 December 2019 the balance of imputation credits available to the shareholders of the Parent Company only was $112,341 (June
2019: $112,341).
Deferred income tax assets are recognised for tax losses to the extent that the realisation of the related tax benefit through future taxable
profits is probable. The tax losses are available to be offset against the future taxable profits of the Group, subject to the shareholder
continuity requirements of the tax legislation being met.
11
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

3Share capital
4. Trade and other payables
Dec-19Jun-19
6 Months12 months
$000$000
Trade creditors
6,149
11,643
Employee benefits, profit share and commissions
1,069 1,133
Other creditors and payables
1,565 147
8,783
12,923
5 Borrowings
Dec-19Jun-19
6 Months12 months
$000$000
Current
Bank borrowings - Finance Receivables (secured)1,350 1,500
3,157 415
- -
Finance leases - Motor Vehicles489 494
4,996 2,409
Non Current
1,304 1,560
1,000 1,000
335 324
2,639 2,884
6 Lease assets and liabilities
The Group leases property assets and information about leases for which the Group is lessee is presented below:
Right of use assets$000
Balance 01 July 2019620
Depreciation charges(48)
Balance 31 December 2019572
Lease liabilities
Less than one year80
One to five years362
More than five years138
Balance 31 December 2019580
7 Trade and other receivables
Dec-19Jun-19
6 Months12 Months
$000$000
Trade receivables livestock (gross)9,50311,482
5,7844,725
Provision for impaired assets(77) (48)
Trade receivables (net of provision)15,210 16,159
Prepayments136 2
15,346 16,161
It is expected that all trade and finance receivables will be collected within 12 months of the balance date.
On 1 July 2019, Allied Farmers Limited announced that it would undergo a capital decrease of shares ("share consolidation").
Shareholders received one ordinary share for every ten ordinary shares held at 5pm on the record date of 16 July 2019. Implementation
date was Wednesday 17 July 2019. As a result of the consolidation the number of shares was reduced from 178,547,294 to 17,854,729
shares.
Bank borrowings - Trading (secured)
Bonds (secured)
Finance Leases - Motor Vehicles
Trade receivables finance (gross)
The total number of shares on issue as at 31 December 2019 is 17,854,729 (December 2018: 16,150,535 being 161,505,350 pre
consolidation).
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.
Bank borrowings - Trading (secured)
Bonds (secured)
12
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

8
Categories of related party relationships
(a) Key management personnel
Dec-19Dec-18
6 Months
6 months
$000
$000
Salaries and other short term benefits411 402
Directors fees108 77
Total key management personnel compensation519 479
(b)
(c)
9Contingent Assets and Liabilities
10
Financial assets and liabilities
Cash and short term deposits
Trade, related party and other receivables
These assets are short term in nature and are reviewed for impairment; their carrying value approximates their fair value
Trade, related party and other payables
These liabilities are mainly short term in nature with their carrying value approximating their fair value.
Allied Farmers Rural Limited during the year has lent surplus funds to its subsidiary NZ Farmers Livestock Limited on
commercial terms set at arms length, these funds being on call and interest bearing at a rate comparable to the bank
facilities. As at 31 December 2019 the total of these funds lent to NZ Farmers Livestock Limted was $1,166,000 (31
December 2018 $808,000)
Subsidiaries
Related party transactions are detailed by reference to the following categories:
(a) 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.
(b) Other related parties: Other related parties including entities that may have directors who are also directors of the Company.
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 2019 totalled
$227,492 in sales (December 2018: $183,238), $320,888 in purchases (December 2018: $190,063) and $17,380 in commission
(December 2018: $12,233), resulting in gross transactions of $565,761 (December 2018: $392,226). These transactions took place
on normal trading terms. The commission earned by New Zealand Farmers Livestock Ltd for the six months to 31 December 2019
was $16,342 (2018: $12,234).
Other related parties
Related Party Transactions
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.
Albany Braithwaite Holdings an associated person of Director Mark Benseman is the holder of $600,000 in bonds.
The Group’s activities expose it to a variety of financial risks, market risk (including currency and interest rate risk), credit risk and liquidity
risk. The Group’s overall risk management program seeks to minimise potential adverse effects on the Group’s financial performance.
The consolidated interim financial statements do not include all financial risk management information and disclosures required in the
annual financial statements. They should be read in conjunction with the Group’s annual financial statements for the period ending 30
June 2019. There have been no changes in the risk management policies since year end.
NZ Farmers Livestock Limited has an advance to its subsidiary Redshaw Livestock Limited as at 31 December 2019 of $208,000 (31
December $208,000).
In presenting the financial statements of the Group, the effect of transactions and balances between fellow subsidiaries and those with the
parent have been eliminated.
With the exception of the uncertain tax position referred to in Note 2 earlier there are no contingent assets or liabilities.
These are short term in nature and their carrying value is equivalent to their fair value.
13
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

Borrowings
The Group’s classification of each class of financial assets and their fair values is set out below.
Dec-19Dec-18
6 Months12 Months
$000$000
Financial Assets measured at amortised cost
Cash and cash equivalents
1,253 2,174
Finance Receivables
5,754 6,609
Trade and other receivables
9,456 8,028
16,463 16,811
Financial Liabilities measured at amortised cost
Trade and other payables
8,784 8,963
Borrowings - Bank
5,811 7,519
Borrowings - Bonds
1,000 1,300
Borrowings - Finance Leases
824 994
16,419 18,776
11Events subsequent to balance date
On the 26 November 2019 the Directors declared a fully imputed dividend of $357,097 being 2.0 cents per share.
The dividend was paid on 17 January 2020. This amount is included in sundry payables.
KPMG
10 Customhouse Quay
PO Box 996
Wellington 6140
Share Registrar
Link Market Services Limited
PO Box 91976
Auckland 1142
Shareholder Enquiries
Link Market Services Limited
Ph: 09 375 5998
Fax: 09 375 5990
Email: lmsenquiries@linkmarketservices.com
PO Box 91976
Auckland 1142
Auckland 1022Registered Office of the Company
201 Broadway
Stratford 4332
Postal Address of the Company
Auckland 1071PO Box 304
Stratford 4352
Ph: 06 765 6199
www.alliedfarmers.co.nz
Philip C Luscombe BAgSci (Hons)
Directors of the Company
Mark Benseman BA (Hons) (Chairperson)
Auditors
COMPANY DIRECTORY
Website
Ross Verry BCA, CA
809 Riddell Road
St Heliers
Marise James FCA, CFInstD
3 Sunset Street
Bell Block
New Plymouth 4312
Strandon
Borrowings have fixed and floating interest rates. Fair value is estimated using the discounted cash flow model based on a current market
interest rate for similar products; their carrying value approximates their fair value.
New Plymouth 4312
Richard Perry B Com (Hons), FCA, CTP
40 Dorset Street
Westmere
2B/3 Clyde Quay Wharf
Te Aro
Wellington 6011
8 Ronald Street
14
DocuSign Envelope ID: EABBD98E-E487-4DD3-A2CB-1607FC42EC27

---

Results for announcement to the market
Name of issuer Allied Farmers Limited
Reporting Period 6 months to 31 December 2019
Previous Reporting Period 6 months to 31 December 2018
Currency

Amount (000s) Percentage change
Revenue from continuing
operations
$14,648 11.15%
Total Revenue $14,648 11.15%
Net profit/(loss) from
continuing operations
$1,181 0.07%
Total net profit/(loss) $1,181 0.07%
Interim/Final Dividend
Amount per Quoted Equity
Security
Not proposed to pay dividends
Imputed amount per Quoted
Equity Security
N/A
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.307 $0.229
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to results release and financial statements.
The net tangible assets per share above is calculated on a post
share consolidation basis
Authority for this announcement
Name of person

authorised
to make this announcement
Brian Lee
Contact person for this
announcement
Brian Lee
Contact phone number 027 201 3040
Contact email address brian.lee@alliedfarmers.co.nz
Date of release through MAP

26/02/2020

Unaudited financial statements accompany this announcement.