South Port - Tax Adjustment Impacts Profit Forecast

NZX MARKET ANNOUNCEMENT


Tax Adjustment Impacts Profit Forecast

9 August 2024

On 25 July 2024 South Port provided updated guidance to the market stating that the
Company expected its full year earnings to be in the region of $8.3M to $9.0M.

The 25 July 2024 release also referred to a one-off deferred tax expense of $0.9M,
as calculated by our external tax advisors. The deferred tax expense arose following
recent changes to tax legislation regarding the deductibility of depreciation on
commercial buildings.

Our Auditor has now determined that our deferred tax calculation differs from its
interpretation of the accounting standard for buildings that previously had an initial
recognition exemption applied.

This difference of interpretation and subsequent revised calculation equates to an
additional deferred tax adjustment of $1.35m (total adjustment now $2.3M), which
will result in a reduction of our reported net profit range to $7.0M to $7.5M.

While this one-off accounting adjustment will reduce our final reported profit, it will
have no impact on cash flows or the underlying profitability of the Company.

ENDS

For further information contact:

Mr Nigel Gear
Chief Executive
South Port New Zealand Ltd
Tel: 0274 94 33 22
Email: ngear@southport.co.nz

Mr Philip Cory-Wright
Chair
South Port New Zealand Ltd
Tel: 021 767 828
Email: philip@cory-wright.co.nz