FY26 Annual Report
Annual Report
for the year ended 30 June 2026
www.alliedfarmers.co.nz
Listed on:
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C
ONTENTS
BUSINESS
OVERVIEW
01 Business
Overview
CHAIR
REPORT
02 Chair Report
3 4 5
DIRECTORS STATUTORY
DISCLOSURES
05 Directors’ 07 Statutory
Disclosures
CONSOLIDATED
FINANCIAL
STATEMENTS
17 Consolidated Financial Statements
INDEPENDENT
AUDITOR’S
REPORT
53 Independent Auditor’s
Report
COMPANY
DIRECTORY
62 Company Directory
This report is dated 28 August 2026 and is signed on behalf of the Board of Allied Farmers Limited:
Shelley Ruha – Chair Richard Milsom - Managing Director
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BUSINESS
OVERVIEW
A
llied Farmers is an NZX-listed investment company that, through its wholly owned subsidiary
New Zealand Rural Land Management Limited Partnership (NZRLM) provides management,
investment and administrative services to NZX listed New Zealand Rural Land Company Limited
and its 75% owned New Zealand Rural Land Investments Limited Partnership (NZL). NZL owns
and leases rural land to tenants to provide shareholders with superior risk-adjusted returns
compared to legacy rural investment vehicles.
During the year Allied Farmers sold its 67.8% share of national livestock agency business, NZ
Farmers Livestock Limited (NZFL). The intention is to use the proceeds to explore growth
opportunities that leverage Allied Farmers core strengths in the rural and asset management
sectors, and optimises the utilisation of tax losses.
A
llied Group’s unrecognised deferred tax assets comprise unused tax losses as at 30 June 2026
which are estimated to total $173,854,432 gross (2025: $177,206,827). T he ability to utilise the
tax losses is dependent on meeting shareholder continuity requirements of prevailing tax
legislation. I n July 2024 Allied Farmers obtained shareholder approval to amend its constitution to
strengthen its ability to restrict share transfers that would cause a breach of shareholder continuity.
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CHAIR
REPORT
The Directors of Allied Farmers Limited (“Allied Farmers” or “Allied Group”) (ALF:NZX) are pleased to report
an audited profit after tax for the year to 30 June 2026 of $2.613 million (FY25 $3.841 million), with an audited
profit after tax attributable to Allied Farmers’ shareholders of $2.989 million (FY25 $2.871 million).
As a result of the New Zealand Farmers Livestock Limited (NZFL) sale on 1 December 2025, Allied Farmers
is required to separately report the performance of both continuing operations, and 5 months of NZFL
discontinued operations. The above result reflects both continuing and discontinuing operations. The loss
before tax from continuing operations was $0.907 million for FY26. This compares to a profit before tax from
continuing operations of $0.227 million for FY25. This decrease in profit before tax is predominantly the result
of reduced NZRLM fee revenue and increased operational and transactional costs.
T
he following table summarises consolidated Profit Before Tax over the previous comparable periods from
Allied Farmers’ investments and Parent Company Operations:
Period (1/7
– 30/6)
NZ Farmers
Livestock
*($m)
NZ Rural
Land
Management
($m)
Parent Company
Cost of
Operations ($m)
2022 2.6 1.6** (0.7)
2023 3.7 1.1 (0.8)
2024 3.0 1.3 (1.2)
2025 3.8 1.5 (1.3)
2026 2.4 0.2 (1.1)
*Reported figures detail 100% of the NPBT for NZFL – Allied Farmers only owned 67% of this business until 1 December 2025, at
which time it was divested. Allied Farmers is required to report on a consolidated basis but has detailed an unconsolidated positi
on
below.
** NZRLM profit attributable to Allied Farmers’ shareholders (as owner of 50% of NZRLM at that time) equity accounted.
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Profit attributable to Allied Farmers’ shareholders
Profit attributable to Allied Farmers’ shareholders reflect its 67.7% ownership of New Zealand
Farmers Livestock Limited (NZFL) for the 5 months to 1 December 2025, and 100% of NZRLM. FY26
after tax profit attributable to Allied Farmers’ shareholders was $2.989 million (FY25 $2.871
million).
Allied Farmers’ basic earnings per share (EPS) increased by 4.0% to 10.37 cents per share (FY25 9.97
cps), and Net Tangible Assets (NTA) per share, based on 67.8% direct ownership of NZFL until 1
December 2025 and 100% ownership of NZRLM, equals $0.66 per share (FY25 $0.51 per share).
Sale of New Zealand Farmers Livestock Limited (NZFL)
On 1 December 2025 Allied Farmers sold its 67.7 percent holding of NZFL to Rural Livestock Limited. The
sale was approved by shareholders at the 6 November 2025 Annual Meeting. Allied Farmers’ share of the
purchase price was $5.878 million in cash. A final amount of approximately $510,000 relating to a Tax Loss
Offset agreement, for the 5-month period of 1 July to 1 December 2025, is expected to be received in April
2027.
The NZFL sale provides Allied Farmers with the opportunity to maximise the value of its investment in
NZFL, enables a focus on and growth of the strongly performing rural asset management business, and to
explore additional complementary investment opportunities.
New Zealand Rural Land Management (NZRLM)
NZRLM is the external manager of NZX listed NZL. At 30 June 2026 NZL owned 17,077 hectares of forestry
estates, and pastoral and horticultural land.
Income comprises fees associated with status quo portfolio management, and overall portfolio performance.
NZRLM’s FY26 revenue was lower than in FY25 due to NZL not undertaking any transactions.
NZRLM received a retrospective performance fee for the value gain on NZL’s assets for the 12-month period
ended 31 December 2025 (NZL’s balance date). This fee is in line with the change in the Net Asset Value (NAV)
of NZL’s portfolio during this period and is paid in NZL shares.
Other Investments
In September 2024 Allied Farmers’ wholly owned SPV, Allied FLA Limited, acquired land and buildings in
the Waikato funded by a mortgage debt of an equivalent amount. The debt is secured over 4 properties
with a GSD over Allied FLA Limited, but there is no exposure to Allied Farmers as the securities are only
against Allied FLA Limited.
Also in September 2024 Allied Farmers advanced $3 million to a substantial farming dairy operation in
South Canterbury to fund its working capital. During FY26 this was reduced to $2.5 million after a principal
repayment. The loan is secured by a second ranking GSD over the assets of the borrower and related
entities of the borrower, and a guarantee from a related entity of the borrower.
As at 30 June 2026, Allied held 4,376,732 shares in NZ Rural Land Company Limited (NZL). During FY26
NZL re-commenced paying shareholder dividends.
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A
ssets Valuations
At 30 June 2026 Allied had cash reserves of approximately $11.8 m illion, with the increase from FY25
predominantly attributable to the proceeds of the NZFL sale.
Allied’s wholly owned subsidiary, New Zealand Rural Land Management Limited Partnership (NZRLM),
holds perpetual Management Contracts for NZX listed New Zealand Rural Land Company Limited and
Australian investment company ROC Partners. Using similar methodology to that used in the independent
valuation for Allied’s purchase in March 2023 of the 50% of the NZRLM Management Contract it did not
own, the valuation of these Management Contracts at 30 June 2026 is in the range of $23.9m to $33.9m,
calculated as follows:
T
he total value of Allied’s assets* at 30 June 2026 is therefore:
*Ignores Allied FLA Limited as it is assumed the asset and liability are equal.
Allied emphasises that these asset values are estimates only and assets may not be realised at those
values.
These asset values imply a net asset value of approximately $1.64 per share, compared with the recent
market price of $0.62 per share. This represents an implied discount of approximately 62%.
O
utlook
The Board continues to explore opportunities to deploy its cash reserves into new investment opportunities.
However, in the absence of such an investment, and the non-recurrence of a FY26 tax benefit, FY27 Profit after
tax is expected to be materially lower than in FY26.
Shelley Ruha - Chair
NZRLM Valuation Scenarios$m
At Acquisition (27 March 2023)16.6
Annual Growth in NZL Asset Value
2.5% p.a.23.9
5.0% p.a.33.9
Allied Pro Forma Assets - 30 June 2026$m
Cash 11.8
Loan Advance2.5
Shares held in NZRLC4.2
NZRLM Valuation mid-point28.9
Total Assets 47.4
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DIRECTORS
Shelley Ruha - Independent Chair
Shelley was appointed a Director of Allied Farmers Limited in November 2022, and Chair in April 2023. Shelley
is a Company Director and Investor across a variety of industries. She Chairs PaySauce Limited and The
Growth Collective Limited (trading as Kindo), and is a director of Heartland Bank Limited, and 9 Spokes
International Limited. Previous directorships include Hobson Wealth Limited, Paymark Limited, Partners Life
Limited, JB Were Limited and The Icehouse. Shelley is an independent director. She has the following
qualification: Bachelor of Commerce.
P
hilip Luscombe - Independent Director
Philip was appointed a Director of Allied Farmers Limited in December 2005 and was previously Chair of New
Zealand Farmers Livestock Limited. As a former Agricultural Research Scientist, and with a broad farming
background, he has had extensive experience in the agricultural sector. His farming interests included a family
dairy farm in Taranaki, and shareholding in the Otago based Argyll Dairy Farm group. Currently Philip's farming
interest is focused on the development of a Solar Farm. He is a Shareholder and Director of Peak Energy Ltd.
He is also an Independent Director of dairy farming business, Te Rua O Te Moko Limited. He is a former director
of PKW Farms Limited, Kiwi Cooperative Dairies Limited, Kiwi Milk Products Limited, Dairy Insight, Dexcel, and
NZAEL Limited. Mr Luscombe is an independent director. He has the following qualifications: BAgSci(Hons)
R
ichard Milsom – Managing Director
Richard was appointed Managing Director of Allied Farmers Limited in April 2023. Richard is one of the founders
and executives of New Zealand Rural Land Management and NZX-listed New Zealand Rural Land Company.
He was previously a consultant at global investment management firm Elevation Capital Management, where
he focused on special situation investments. Richard has been involved in a number of industries including
investment management, tourism, retail and agriculture/ biotechnology – in functions ranging from finance, to
marketing, strategy, strategic review and implementation. Richard was previously on the board of the Institute
of Finance Professionals New Zealand (INFIZ) and was recognised within the financial services industry by
being awarded the INFINZ Emerging Leader Award 2017. Richard is not an independent director. He holds a
BCom in finance and economics from the University of Canterbury, with post-graduate certificates in value
investing from Columbia University (New York), and agricultural businesses and leadership from Harvard
Business School (Boston).
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Director Independence:
As at 30 June 2026, Shelley Ruha and Philip Luscombe are considered by the Board to be independent
directors. They are considered to be independent due to the following factors:
•They are/were non-executive directors who are not substantial shareholders and who are free of any
interest, business or other relationship that would materially interfere with, or could reasonably be
seen to materially interfere with, the independent exercise of their judgement;
•They have not been employed or retained, within the last three years, to provide material professional
services to the Company;
•Within the last 12 months, they were not a partner, director, senior executive or material shareholder
of a firm that provided material professional services to the Company or any of its subsidiaries; and
•Neither of these directors:
ohave been, within the last three years, a material supplier to the Company or
have any other material contractual relationship with the Company or another
group member other than as a director of the Company;
oreceive performance-based remuneration from, or participates in, an
employee share scheme of the Company; and
ocontrol, or is an executive or other representative of an entity which controls,
5% or more of the Company’s voting securities.
•In the case of Philip Luscombe, the fact that he has been a director for a period greater than 12
years has not caused him to no longer be independent of management. During his tenure Mr.
Luscombe has not demonstrated any undue influence over management, and Mr. Luscombe does
not involve himself in matters that are beyond what would be required or expected of an
independent director. In addition, during his tenure, Mr. Luscombe has not at any time had any of
the factors described above apply to him.
Richard Milsom is not considered to be independent because he is Allied Farmers’ Managing Director and a
substantial shareholder.
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STATUTORY
DISCLOSURES
Statutory Disclosures:
M
ore information on Allied Farmers governance is set out in the Corporate Governance Report, a copy of
which is available on the Allied Farmers’ website, www.alliedfarmers.co.nz/investors.
Disclosure of Interest:
Pursuant to section 140 of the Companies Act 1993, the following interests were disclosed during FY26
(excluding directorships of wholly owned subsidiaries) in the Interests Register:
DirectorEntity Relationship
Philip Luscombe Allangrange Farming Limited Director
Argyll Dairy Farm Limited Chairman
Hendham Farm Company Limited Director
Hendham Trust Trustee
Kingfisher Escape Limited Director
Luscombe Partnership Partner
Mairangi Investments Limited Director
McCallbraes Dairy Limited Director
Par Farms Limited Director
Pharm Trust Trustee
Riverview Dairy Limited Director
Te Rua O Te Moko Limited Director
Peak Energy Limited Director
Shelley Ruha 9 Spokes and subsidiaries Director
Analey Holdings Ltd and Analey Investments Ltd Director and
Shareholder
Analey Riverhead Limited Ltd Director and
Shareholder
Heartland Bank Ltd Director
IT & Business Consulting Ltd Director and
Shareholder
PaySauce Limited Chair
Partners Group Holdings Limited and Partners Life
Limited
Ceased Director
The Growth Collective Limited trading as Kindo Chair
Smartpay Holdings Limited Ceased Director
Richard Milsom Bellevue Enterprises Limited Consultant
REM Trustee Limited Director and
Shareholder
RPMILSOM Investments Limited Director
RSM Investment Holdings Limited Shareholder
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Directors’ Share Trading and Holdings:
Directors disclosed the following acquisitions and disposals of relevant interests in Allied Farmers Limited
shares during FY26 pursuant to section 148 of the Companies Act 1993:
Director/relevant Interest Date(s) Details
Richard Milsom 22 September 2025 Issue of 144,032 Performance Share Rights
Philip Luscombe 12-18 November 2025 On market purchase of 71,247 ordinary shares
As at 30 June 2026, directors, or entities related to them, held relevant interests (as defined in the
Financial Markets Conduct Act 2013) in Allied Farmers Securities as follows:
Director Number of shares and percentage of shares on issue
Richard Milsom 4,363,667 (15.148%)
Philip Luscombe 86,804 (0.3013%)
Shelley Ruha 150,000 (0.52%)
D
irectors’ Fees:
Director 2026 2025
Philip Luscombe $70,000 $70,000
Shelley Ruha $85,000 $85,000
Richard Milsom
- -
Total $155,000 $155,000
Directors Other Remuneration:
Director 2026 2025
Richard Milsom
$619,300
$656,250
Shareholders approved a cap on directors’ fees of $332,000 p.a. at the 2007 Annual Meeting. This cap
includes all directors’ fees paid in relation to Group subsidiary companies as well as for the Parent.
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Particular Disclosures:
Related Party disclosures and information can be found in section E1 of the FY26 Financial Statements.
General:
Except to the extent described above, no Director has entered into any transactions with the Company or
its subsidiaries other than in the normal course of business, on the Company’s normal terms of trade, and
on an arms-length basis.
No Director issued a notice requesting to use Group information received in their capacity as a Director
which would not otherwise have been available to them.
During the year the Company paid premiums on contracts insuring directors and officers in respect of liability
and costs permitted to be insured against in accordance with Section 162 of the Companies Act 1993 and
the Company’s constitution.
Managing Director Remuneration:
The review and approval of the Managing Director’s remuneration is the responsibility of the Allied
Farmers’ Board after receipt of recommendations from the Remuneration and Nomination Committee.
The Managing Director’s remuneration comprises a fixed base, and at-risk short-term and long-term
incentives. At-risk incentives are paid against targets agreed with the Managing Director, and are based on
financial measures including earnings targets and progress against objectives related to the strategic plan
and other personal objectives. The Board assesses the Managing Director’s Short Term Incentive
performance at the end of each financial year.
Richard Milsom’s total remuneration for FY26 was as follows:
Financial
Year
Fixed
Remuneration*
Short Term Incentive Long Term Incentive Total
Remuneration
Earned Amount
earned as
% of target
award
Number of
Shares Vested
Market
Price
FY2026 $400,000 $1 30,000 65% 144,032 (100%
of target
achieved)
$89,300** $619,300
FY 2025 $375,000 $281,250 150% Nil n/a $656,250
* No other benefits were paid to Mr. Milsom.
**Based on a share price of 62cps at 20 August 2026
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FY26 Short Term Incentive: For FY26 the Managing Director’s short-term targets and objectives were:
•Target: $200,000, being 50% of the Managing Director’s FY26 base remuneration.
•Maximum achievable: $400,000, being 100% of the Managing Director’s FY26 base remuneration.
•Objectives:
25%- NZRLM
achieves Net Profit Before Tax (NPBT) 10% higher than FY25 NPBT
75% - Achieving strategy, transaction, and leadership targets.
•The Allied Farmers’ Board assessed Richard Milsom FY25 performance targets at 65% achieved,
resulting in a payment of $130,000.
FY27 Short Term Incentive: For FY27 the Managing Director’s short-term targets and objectives are:
•Target: $200,000, being 50% of the Managing Director’s FY27 base remuneration.
•Maximum achievable: $400,000 being 100% of the Managing Director’s FY27 base remuneration.
•Objectives:
25%- NZRLM
exceeding financial performance targets established by the Board
25% - Allied Group Strategy
25% NZRLM Strategy
25% - Leadership
The Allied Farmers’ Board will assess Richard Milsom’s achievement against these FY27 performance targets at
the end of FY27.
Long
Term Incentive
The Board has established a Long-T erm Incentive Plan to link rewards with strategic long-term goals and
performance and the maximisation of shareholder returns. This involves a grant of Performance Rights
being made to the Managing Director subject to certain Vesting Conditions. Each Performance Right
represents a right to receive an Allied Farmers’ ordinary share or be paid an amount of cash consideration
(in certain circumstances), subject to the satisfaction of the Vesting Conditions. The Vesting Conditions are
measured over a three-year performance period. The NPAT target will be set at the beginning of each of
the three financial years and assessed at the conclusion of the three-year performance period.
FY26 Long Term Incentive: 144,032 Performance Rights were issued to Mr. Milsom for FY26 on 22 September
2025, with that number being equivalent to 0.5% of Allied Farmers’ total number of ordinary shares on issue at 1
July 2025. Allied Farmers’ share price on 22 September 2025 was 77 cents per share, meaning that if the PSR’s
had vested and ordinary shares issued on that date, those shares would have had a face value of $110,904 on
that date.
Allied Farmers amended its constitution in July 2024 to restrict the issue of further equity securities to
shareholders such as Mr. Milsom who already own greater than 5% of Allied Farmers’ shares. Therefore, at the
Allied Farmers’ 2024 Annual Meeting shareholder approval was sought and obtained for the grant of
Performance Rights to Mr. Milsom for FY25, FY26 and FY27.
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The proportion of Performance Rights that satisfy the Vesting Condition are determined by reference to the
following scale:
Performance against target
(budgeted) three-year average of
Group NPBT
Percentage of performance rights to satisfy
Vesting Condition
<80% of target 0%
80% to 100% of target 50% paid if achieve 80%.
100% paid if achieve 100% or more.
with a pro rata allocation between the 80% and
100% achievement levels.
FY27 Long Term Incentive: The Board has agreed to issue Mr. Milsom a further 144,032 Performance
Rights for FY27.
The proportion of Performance Rights, if approved, that satisfy the Vesting Condition will be determined by
reference to the following scale:
Performance against target
(budgeted) three-year average of
Group normalised EBITDA
Percentage of performance rights to satisfy
Vesting Condition
<80% of target 0%
80% to 100% of target 50% paid if achieve 80%.
100% paid if achieve 100% or more.
with a pro rata allocation between the 80% and
100% achievement levels.
Mr. Milsom does not have a severance package and his contract can be terminated on 3 months’ notice.
Employee Long Term Incentive Plan
Certain employees also participate in the Long-Term Incentive Plan on the same basis as the Managing Director.
On 22 September 2025 95,185 Performance Share Rights were issued to employees, of which 28,519 lapsed
prior to 30 June 2026 on the resignation of an employee.
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S
ubsidiary Employee Remuneration:
Employees’ FY26 remuneration and benefits over $100,000 is within the following specified bands:
Remuneration Range 2026 2025
100,000 110,000 1 3
110,001 120,000 1 3
120,001 130,000 1 3
130,001 140,000 2 5
140,001 150,000 1 3
150,001 160,000 1 1
160,001 170,000 1 1
170,001 180,000 - -
180,001 190,000 -4
210,001 220,000 1 -
220,001 230,000 -1
230,001 240,000 1 1
240,001 250,000 -1
250,001 260,000 -1
270,001 280,000 -1
280,001 290,000 -1
320,001 330,000 -1
Total 10 30
The remuneration figures shown in the above table include all monetary remuneration actually paid, plus
the cost of all benefits provided, during the year. The table does not include independent contractors.
Substantial Product Holders:
Notices given under the Financial Markets Conduct Act 2013 up to 30 June 2026:
Holder Relevant Interest Date of Notice
Richard
Milsom
4,363,667 ordinary shares (15.15%) 17 October 2025
WAF Limited 5,758,406 ordinary shares (19.99%) 25 October 2023
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Subsidiary Companies:
Directors of subsidiary companies as at 30 June 2026 were as follows:
Subsidiaries of the Parent Principal Activity Directors
Allied Farmers Rural
Limited
Non-trading S. Ruha, P Luscombe
ALF Nominees Limited
Nominee company S. Ruha
Allied Farmers (New
Zealand) Limited
Non-trading S. Ruha
Rural Funding SolutioNZ
Limited
Rural Financing S. Ruha
Allied FLA Limited Non-trading R. Milsom
New Zealand Rural Land
Management GP
Limited
General Partner of New Zealand Rural
Land Management Limited Partnership
S. Ruha, R Milsom
Subsidiary of New Zealand Rural Land Management GP Limited
NZRLM Limited Non-trading
R. Milsom
Subsidiaries of Allied Farmers (New Zealand) Limited
Allied Farmers Property
Holdings Limited
Non-trading S. Ruha
QWF Holdings Limited Non-trading S. Ruha
Lifestyles of NZ
Queenstown Limited
Non-trading S. Ruha
LONZ 2008 Limited Non-trading S. Ruha
LONZ 2008 Holdings
Limited
Non-trading S. Ruha
Clearwater Hotel 2004
Limited
Non-trading S. Ruha
Subsidiaries of Allied Farmers Property Holdings Limited
UFL Lakeview Limited Non-trading S. Ruha
5M No 2 Limited Non-trading S. Ruha
Shareholder Information:
The ordinary shares of Allied Farmers Limited are listed on the NZX. The NZX share code is ‘ALF’.
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Tw
enty Largest Registered Shareholders:
T
he shareholder information in the following disclosures has been taken from the Company’s share
register at 5 August 2026.
Rank Investor Name
Total
Units % Issued Capital
1 Waf Limited 5,758,406 19.99
2 Rem Trustee Limited 3,585,000 12.45
3 Graeme Stuart Lord & Lisa Anne Lord 1,438,593 4.99
4 Custodial Services Limited 1,349,942 4.69
5 Wairahi Investments Limited 1,340,000 4.65
6 Donald Clifton Jacobs 831,050 2.88
7 Elizabeth Beatty Benjamin & Michael Murray Benjamin 682,622 2.37
8 Dfs Investment Partners Llc 522,185 1.81
9 Rpmilsom Investments Limited 512,000 1.78
10 Deborah Lee Seerup 500,001 1.74
11 New Zealand Depository Nominee 497,237 1.73
12 Glenn Leslie Ballinger 457,334 1.59
13 Squirrell & Alastair Mansell & Sam Pearson & Jake Pearson 395,000 1.37
14 FNZ Custodians Limited 390,449 1.36
15 Fortune Capital Group Limited 337,239 1.17
16 Jade NZ Limited 300,000 1.04
17 New Zealand Central Securities Depository Limited 294,136 1.02
18 NZ Asset Invest Limited 229,777 0.80
19 FNZ Custodians Limited 214,023 0.74
20 Milsom Holdings Limited 190,000 0.66
Analysis of Shareholding:
Range Holders Holders %
Issued
Capital
Issued
Capital %
1-10001.046 62.60 401,568 1.39
1001-5000324 19.39 803,928 2.79
5001-10000104 6.22 762,020 2.65
10001-50000139 8.32 3,275,454 11.37
50001-10000021 1.26 1,556,024 5.40
Greater than 10000037 2.21 22,007,440 76.40
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Diversity and Gender:
In June 2020, Allied Farmers adopted a Diversity and Inclusion Policy. More information on the Policy is set
out in the Corporate Governance Report and a copy is available on the Allied Farmers’ website. The Board
has evaluated Allied Farmers’ performance against its Diversity Policy objectives to operate the business in
a way that:
•does not tolerate discrimination of any kind;
•is objective, open-minded and free from discrimination;
•empowers management to cultivate a culture of inclusion in which the strengths of every
individual are recognised and valued;
•seeks to ensure that all staff receive equal and fair treatment under our policies and
practices, so that success is unhindered by individual differences;
•recognises and values individual diversity, different skills, ability and experiences; and,
•complies with the New Zealand Human Rights Act 1993, New Zealand Bill of Rights Act
1990, and all other relevant Human Rights laws.
The Board considers that these objectives have been met.
As at 30 June 2026, females represented 33% (FY25: 33%) of Directors and 0% (FY25: 20%) of Officers of
Allied Farmers. Officers are defined as being the Managing Director of Allied Farmers Limited and specific
executives having key influence.
Current Year Previous Year
Male Female Male Femal
e
Number of
Directors
2 1 2 1
Percentage of
Directors
67% 33% 67% 33%
Number of
Officers
2 0 4 1
Percentage of
Officers
100% 0% 80% 20%
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Shareholder Enquiries:
Shareholders should send changes of address, dividend queries, and instructions and shareholding information
requests to MUFG, which acts as the Company’s share registrar.
Annual Meeting of Shareholders:
Allied Farmers Limited’s Annual Meeting of shareholders is typically held in November each year. A Notice of
Annual Meeting and Proxy Form will be circulated to shareholders prior to the meeting.
Dividends Paid:
No dividend was paid to shareholders in FY26 (FY25: Nil).
Donations:
The Allied Farmers Board has determined that it will not make political donations. No political donations were
made during FY26.
Waiver and Approval:
On 7 June 2024 NZ RegCo granted Allied Farmers the following, in relation to proposed amendments to its
constitution to minimise the risk to Allied Farmers’ shareholder continuity being lost inadvertently:
•A waiver from Listing Rule 8.1.5 to the extent that this Rule would otherwise prevent Allied Farmers
from suspending the voting rights attaching to securities that, in accordance with the Constitutional
Amendments, are Affected Shares; and
•Approval under Rule 8.1.6 to allow Allied Farmers to include provisions in its Constitution that:
orestrict the transfer of Allied Farmers’ securities to any person if the Board knows or believes
that the transfer will or is likely to result in that person having a relevant interest in breach of the
Ownership Threshold;
orestrict Allied Farmers from issuing, acquiring or redeeming shares where Allied Farmers has
actual knowledge that the issue, acquisition or redemption would result in a breach of the
Ownership Threshold; and
oallow the Board to require documentation and/or information in relation to a proposed transfer
or transferee of Allied Farmers’ shares, in the circumstances permitted under the Constitutional
Amendments.
F
ull details of the waiver and approval, including the definition of the capitalised terms referred to above, can be
found on the NZX website: https://www.nzx.com/announcements/432440
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CONSOLIDATED
FINANCIAL STATEMENTS
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Allied Farmers Limited and its subsidiaries
Consolidated Financial Statements
For the year ended 30 June 2026
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The Directors are pleased to present the consolidated financial statements of Allied Farmers Limited and its subsidiaries (the ‘Group’) for the year ended
30 June 2026.
The Board of Directors of the Group authorised the consolidated financial statements for issue on 28 August 2026.
For and on behalf of the Board
___________________________
Director
___________________________
Director
Allied Farmers Limited and its subsidiaries
Directors’ responsibility statement
For the year ended 30 June 2026
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Notes$ '000$ '000
Continuing operations
Fee revenue4 1,801 2,734
Dividend income 254 136
Rental income 227 186
Total income 2,282 3,056
Employee benefits expense7 (727) (466)
Depreciation and amortisation (543) (521)
Other operating expenses (2,930) (1,840)
Fair value (loss)/gain on investment property16 (2,455) 932
Fair value gain/(loss) on financial liabilities at FVTPL18 3,331 (928)
(Loss)/profit before financing and tax (1,042) 233
Finance income8 520 425
Finance expense8 (385) (431)
(Loss)/profit before tax (907) 227
Income tax benefit/(expense)9 2,296 —
Profit for the year from continuing operations 1,389 227
Discontinued operations
Profit from discontinued operations, net of tax5 1,224 3,614
Profit for the year 2,613 3,841
Other comprehensive income for the year from continuing operations15
Change in fair value of investments designated at FVOCI, net of tax (1) (215)
Total comprehensive income for the year 2,612 3,626
Profit for the year attributable to:
Shareholders of Allied Farmers Limited 2,989 2,871
Non-controlling shareholders (376) 970
2,613 3,841
Total comprehensive income for the year attributable to:
Shareholders of Allied Farmers Limited 2,988 2,656
Non-controlling shareholders (376) 970
2,612 3,626
Continuing operations earnings per share (cents) - Basic6 4.82 0.79
Continuing operations earnings per share (cents) - Diluted6 4.73 0.78
Earnings per share (cents) - Basic6 10.37 9.97
Earnings per share (cents) - Diluted6 10.18 9.84
Restated¹
20262025
1
Restated for the impact of discontinued operations (note 5).
Allied Farmers Limited and its subsidiaries
Consolidated statement of comprehensive income
For the year ended 30 June 2026
The accompanying notes form part of these financial statements.
20
Current assets
Cash and cash equivalents10 11,784 9,660
Trade and other receivables11 792 11,869
Loan advance12 500 500
Inventories — 156
Total current assets 13,076 22,185
Non‑current assets
Investments held at FVOCI15 4,245 3,580
Investment property16 8,045 10,500
Loan advance 12 2,000 2,500
Intangible assets14 8,797 9,358
Goodwill13 — 742
Right-of-use assets20 152 1,954
Property, plant and equipment19 29 1,051
Deferred tax assets9 — 1,311
Total non-current assets 23,268 30,996
Total assets 36,344 53,181
Current liabilities
Trade and other payables21 785 12,881
Income tax payable9 — 20
Borrowings17 — 731
Lease liabilities20 15 830
Total current liabilities 800 14,462
Non‑current liabilities
Borrowings17 — 1,338
Loans held at FVTPL18 7,666 10,496
Lease liabilities20 160 1,269
Total non-current liabilities 7,826 13,103
Total liabilities 8,626 27,565
Net assets 27,718 25,616
Equity
Share capital22 158,204 158,204
Accumulated losses (129,214) (132,203)
Share based payment reserve 173 80
FVOCI investment reserve (1,445) (1,444)
Non-controlling interests23 — 979
Total equity 27,718 25,616
20262025
Notes$ '000$ '000
Allied Farmers Limited and its subsidiaries
Consolidated statement of financial position
As at 30 June 2026
The accompanying notes form part of these financial statements.
21
Share
capital
Accumulated
losses
Share based
payment
reserve
FVOCI
investment
reserve
Allied
shareholders
interests
Non-controlling
shareholders
interestsTotal equity
Notes$ '000$ '000$ '000$ '000$ '000$ '000$ '000
Balance at 01 July 2024 158,204 (135,070) — (1,229) 21,905 2,688 24,593
Profit for the year — 2,871 — — 2,871 970 3,841
Fair valuation of equity securities — — — (215) (215) — (215)
Total comprehensive income for
the year — 2,871 — (215) 2,656 970 3,626
Transactions with owners in their
capacity as shareholders:
Share based payment — — 80 — 80 — 80
Share capital cancellation— — (4) — — (4) (1,955) (1,959)
Dividends paid to non-controlling
interests— — — — — — (724) (724)
— (4) 80 — 76 (2,679) (2,603)
Balance at 30 June 2025 158,204 (132,203) 80 (1,444) 24,637 979 25,616
Profit for the year — 2,989 — — 2,989 (376) 2,613
Fair valuation of investments held
at FVOCI — — — (1) (1) — (1)
Total comprehensive income for
the year — 2,989 — (1) 2,988 (376) 2,612
Transactions with owners in their
capacity as shareholders:
Share based payment — — 93 — 93 — 93
Share capital cancellation23 — — — — — (636) (636)
Dividends paid to non-controlling
interests23 — — — — — (668) (668)
Non-controlling interest
derecognised on disposal of New
Zealand Farmers Livestock Group5 — — — — — 701 701
— — 93
—
93 (603) (510)
Balance at 30 June 2026 158,204 (129,214) 173 (1,445) 27,718 — 27,718
Allied Farmers Limited and its subsidiaries
Consolidated statement of changes in equity
For the year ended 30 June 2026
The accompanying notes form part of these financial statements.
22
Restated¹
20262025
Notes$ '000$ '000
Cash flows from operating activities
Receipts from customers 4,192 28,068
Interest received 713 917
Payments to suppliers and employees (5,831) (21,410)
Interest paid (186) (505)
Tax loss offset 1,315 —
Income taxes received/(paid) (50) (72)
Interest element of lease repayments (80) (199)
Net cash from operating activities28 73 6,799
- continuing operations 155 1,282
- discontinued operations5 (82) 5,517
Investing activities
Proceeds from sale of NZFL Group5.2.1 2,211 —
Proceeds from repayment of loan advance 500 —
Dividend income 169 —
Acquisition of property, plant and equipment (55) (35)
Proceeds from disposal of property, plant and equipment 61 418
Proceeds on sale of Saleyards — 156
Proceeds from disposal of other investments — 7
Proceeds from loan advance — (3,000)
Increase in finance receivables NZ Farmers Livestock Finance Ltd — (16)
Capital contribution to Associated Auctioneers — (18)
Net cash from/(used in) investing activities 2,886 (2,488)
- continuing operations 669 (3,000)
- discontinued operations5 2,217 512
Financing activities
Repayment of principal on lease liabilities (302) (856)
Repayment of bank borrowings at amortised cost — (640)
Drawdown from borrowings 4,550 —
Repayment of loan book related borrowings (1,728) —
Repayment of bank borrowings (2,051) —
Dividend paid to NCI (668) (724)
Share capital reduction in NZ Farmers Livestock Limited (636) (1,955)
Net cash (used in) financing activities28 (835) (4,175)
- continuing operations (2,050) (640)
- discontinued operations5 1,215 (3,535)
Net increase in cash and cash equivalents 2,124 136
Cash and cash equivalents at beginning of year10 9,660 9,524
Cash and cash equivalents at end of financial year10 11,784 9,660
Allied Farmers Limited and its subsidiaries
Consolidated statement of cash flows
For the year ended 30 June 2026
The accompanying notes form part of these financial statements.
23
1. Reporting entity
The consolidated financial statements are for Allied Farmers Limited (the ‘Company’) and its subsidiaries (together referred to as ‘Allied’ or ‘the Group’) for
the year ended 30 June 2026.
Allied Farmers Limited and its subsidiaries is a for-profit entity incorporated in New Zealand and registered under the Companies Act 1993. The Company is
an FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013. The Company was incorporated
on 08 October 1913 and is domiciled in New Zealand. The Company is listed on the New Zealand Stock Exchange (NZX Limited) with ordinary shares listed on
the NZX Main Board. The address of the Company’s registered office is 131 Queen Street, Auckland Central, Auckland, New Zealand.
These consolidated financial statements have been approved for issue by the Board of Directors on 28 August 2026.
2. Material accounting policy information
The material accounting policies applied in the preparation of these consolidated financial statements are set out in note 2 or in the accompanying notes.
These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 Statement of compliance and reporting framework
The consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP) and in
compliance with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable New Zealand accounting standards
and authoritative notices that are applicable to entities that apply NZ IFRS and IFRS® Accounting Standards (“IFRS®”), as appropriate for a Tier 1 for-profit
entity. They comply with interpretations issued by the IFRS® Interpretations Committee (IFRIC) applicable to companies reporting under IFRS® Accounting
Standards.
The Company is listed on the NZX Main Board and is a Financial Markets Conduct (FMC) reporting entity under Part 7 of the Financial Markets Conduct Act
2013. The consolidated financial statements have also been prepared in accordance with the requirements of the Companies Act 1993, the Financial Markets
Conduct Act 2013 and the Main Board/Debt Market Listing Rules of NZX Limited.
2.2 Functional and presentational currency
These consolidated financial statements are presented in New Zealand dollars, which is the functional currency of all Group entities. All amounts have been
rounded to the nearest thousand ($'000), unless otherwise stated.
2.3 Basis of preparation and measurement
The consolidated financial statements have been prepared on the historical cost basis except for investment properties and certain financial assets and
financial liabilities which are measured at fair value.
The Directors, having considered projected future performance and the availability of financing, determined that the consolidated financial statements are
appropriately prepared on a going concern basis.
Revenue, expenses, assets and liabilities are recognised net of the amount of goods and services tax (GST) except:
•where the amount of GST incurred is not recovered from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as
part of an item of expense; or
•for receivables and payables which are recognised inclusive of GST (the net amount of GST recoverable from or payable to the taxation authority is
included as part of receivables or payables).
The NZ Farmers Livestock Limited Group (‘NZFL Group’) has been presented as a discontinued operation in accordance with NZ IFRS 5 Non-current Assets
Held for Sale and Discontinued Operations. Accordingly, the results of the NZFL Group are presented separately from continuing operations in the
consolidated statement of comprehensive income and related note disclosures. Comparative information for the consolidated statement of comprehensive
income, earnings per share and related disclosures has been restated to conform with the current year's presentation. Comparative consolidated statement
of financial position balances have not been restated. Further details are provided in note 5.
The consolidated financial statements have been prepared on a going concern basis. The Directors have assessed the Group’s financial position, forecast
cash flows and funding requirements. At 30 June 2026, the Group had cash and cash equivalents of $11.784 million, net current assets of $12.276 million,
net assets of $27.718 million and have repaid all bank borrowings.
The Group’s $7.666 million funding arrangement with MC Redlands Pty Ltd (note 18) is due for repayment in September 2027 and is secured over the
properties held by Allied FLA Limited (note 16). The facility is ring-fenced within Allied FLA Limited and is not guaranteed by Allied Farmers Limited or any
other entity within Allied Farmers Group. Allied FLA Limited remains legally liable for the debt, which is expected to be settled from the sale of the secured
properties (note 18).
Having considered the Group’s available liquidity, forecast cash flows and the terms of the funding arrangement, the Directors concluded that the Group has
sufficient resources to meet its obligations as they fall due. Accordingly, the Directors consider the going concern basis of preparation to be appropriate and
that no material uncertainty exists.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
24
2.4 Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company and its subsidiaries.
Control is achieved when the Group:
•has power over the investee;
•is exposed, or has rights, to variable returns from its involvement with the investee; and
•has the ability to use its power to affect its returns.
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements
of control listed above.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary.
Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of comprehensive
income from the date the Group gains control until the date when the Group ceases to control the subsidiary.
When necessary, adjustments are made to the financial statements of a subsidiary to bring their accounting policies into line with the Group's accounting
policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated
in full on consolidation.
2.5 New standards, interpretations and amendments not yet effective
The Group has adopted all relevant standards, amendments to standards or interpretations that are effective from 1 July 2025 during the year with no
material impact on the Group.
No new standards, amendments to standards or interpretations that are not yet effective have been early adopted by the Group in these consolidated
financial statements.
In May 2024, the New Zealand Accounting Standards Board (NZASB) issued a new standard NZ IFRS 18 Presentation and Disclosure in Financial Statements
which replaces NZ IAS 1 Presentation of Financial Statements. NZ IFRS 18 is effective for reporting periods beginning on or after 1 January 2027. NZ IFRS 18
introduces a defined structure for the Income Statement, requiring income and expense items to be categorised into operating, investing, financing, income
taxes and discontinued operations. Other requirements include enhanced disclosures for management-defined performance measures and additional
guidance on disaggregation/aggregation principles applied to all financial statements and notes. The Group expects to adopt NZ IFRS 18 in the annual
reporting period beginning 1 July 2027.
There are no other new standards, amendments or interpretations that have been issued and are not yet effective, that are expected to have a significant
impact on the financial statements of the Group.
2.6 Financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Financial instruments are classified into the following specified categories: ‘fair value through other comprehensive income’ (FVOCI), ‘fair value through
profit or loss' (FVTPL), and 'at amortised cost'. The classification depends on the business model and nature of the cash flows of the financial instrument and
is determined at the time of initial recognition.
The Group’s financial instruments comprise:
•cash, trade receivables and loan advance which are classified and measured at amortised cost,
•investments in equity instruments designated as FVOCI,
•trade and other payables and bank borrowings which are classified and measured at amortised cost, and
•borrowings with MC Redlands Pty Ltd which is designated as FVTPL.
Financial liabilities - Amortised cost
Financial liabilities at amortised cost (including trade and other payables) are initially recognised at fair value and subsequently measured at amortised cost
using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period.
The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where
appropriate) a shorter period, to the net carrying amount on initial recognition.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
25
2.6 Financial instruments (continued)
Financial liabilities - FVTPL
Certain financial liabilities are designated at FVTPL on initial recognition to avoid the accounting mismatch arising from the measurement of funding
arrangements and its related investment property on different bases. Subsequent to initial recognition, these financial liabilities are remeasured to fair value
at each reporting date, with fair value movements recognised in accordance with NZ IFRS 9.
Financial assets - Derecognition of financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the risks and
rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for
amounts it may have to pay.
Financial liabilities - Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire. The difference between
the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.
3. Critical judgements and estimates
The preparation of consolidated financial statements requires management to exercise its judgement in applying Allied's accounting policies. Significant
estimates and critical judgements are reviewed by management on an ongoing basis, with revisions recognised in the period in which the estimate is revised
and in any future periods affected. Areas of estimate or judgement that have the most significant impact on the amounts recognised in the consolidated
financial statements are disclosed in the following notes:
•Note 4 Segment information (Judgement)
•Note 5 Discontinued operations (Judgement)
•Note 14 Intangible assets (Estimate)
•Note 16 Investment property (Judgement and Estimate)
•Note 18 Loans held at FVTPL (Judgement and Estimate)
3.1 Fair value estimation
The Group’s assets and liabilities that are measured at fair value are investment properties, borrowings and investments held at FVOCI.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an
asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account
when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is
determined on such a basis.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in
making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the
lowest level of input that is significant to the fair value measurement. For financial reporting purposes, fair value measurements are categorised into Level 1,
2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows:
•Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
•Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly;
and
•Level 3 inputs are unobservable inputs for the asset or liability.
The carrying value of all other financial assets and liabilities held at amortised cost reasonably approximates the fair value due to the short term nature of
the financial instruments.
4. Segment information
The segment results disclosed are based on those reported to the Managing Director and are how the Group reviews and manages its performance.
Following the disposal of the NZ Farmers Livestock Limited Group during the year ended 30 June 2026, the Livestock services and Finance services segments
have been presented as a discontinued operation and comparative segment information has been re-presented accordingly. Refer to note 5.
The remaining reportable segments represent the Group’s continuing operations.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
26
4. Segment information (continued)
Rural land management: New Zealand Rural Land Management Limited Partnership (‘NZRLM’) is the contracted asset manager of New Zealand Rural Land
Company Limited (‘NZL’), including a management agreement with ROC Partners.
Parent operations: The ultimate holding company for Allied Group’s investments include an investment property and a loan advance together with the
governance activity for the Group.
Rural land managementParent operationsTotal
Restated¹Restated¹Restated¹
202620252026202520262025
$ '000$ '000$ '000$ '000$ '000$ '000
Management fee revenue 1,384 1,425 — — 1,384 1,425
Performance fee revenue 387 856 — — 387 856
Transaction fee revenue 30 452 — — 30 452
Dividend income — — 254 136 254 136
Rental income — — 227 186 227 186
Total income 1,801 2,733 481 322 2,282 3,055
Employee benefits expense (476) (363) (251) (103) (727) (466)
Depreciation and amortisation (540) (521) (3) — (543) (521)
Other operating expenses (620) (313) (2,310) (1,527) (2,930) (1,840)
Total expenses (1,636) (1,197) (2,564) (1,630) (4,200) (2,827)
Finance income — — 520 425 520 425
Finance expense (5) — (380) (431) (385) (431)
Operating profit/(loss) before tax from continuing
operations 160 1,536 (1,943) (1,314) (1,783) 222
Fair value (loss)/gain on investment property — — (2,455) 932 (2,455) 932
Fair value gain/(loss) on financial liabilities at FVTPL — — 3,331 (928) 3,331 (928)
Profit/(loss) before tax from continuing operations 160 1,536 (1,067) (1,310) (907) 226
Income tax benefit/(expense) 2,296 —
Profit/(loss) after tax from continuing operations 160 1,536 (1,067) (1,310) 1,389 226
Rural land managementParent operationsTotal
202620252026202520262025
$ '000$ '000$ '000$ '000$ '000$ '000
Current assets 2,302 1,660 10,774 2,844 13,076 4,504
Investments in NZL — — 4,245 3,579 4,245 3,579
Other non-current assets 8,975 9,320 2,003 2,500 10,978 11,820
Investment property — — 8,045 10,500 8,045 10,500
Assets
11,277 10,980 25,067 19,423 36,344 30,403
Current liabilities (112) (864) (688) (534) (800) (1,398)
Non-current liabilities (160) (1,338) (7,666) (10,496) (7,826) (11,834)
Liabilities
(272) (2,202) (8,354) (11,030) (8,626) (13,232)
Additions of property, plant and equipment, and
right of use assets
197 — 2 — 199 —
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
27
4. Segment information (continued)
Revenue
The Group's revenue principally comprises property management fees, performance fees and transaction fees earned under management agreements.
Revenue is recognised net of GST and excludes amounts collected on behalf of third parties.
Fee revenue
Management fees are recognised over time as management services are provided, reflecting the continuous transfer of services to customers throughout
the contract period. Fees are measured in accordance with the applicable management agreements and are based on the net asset value of the managed
entities. Management fees are invoiced monthly and are payable within 20 days of invoice date.
Performance fees represent variable consideration and are recognised when it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur. Revenue is measured at the fair value of the consideration receivable at the date the performance obligation is satisfied.
Performance fees may be received under two agreements under the following mechanism:
•Agreement 1. Annual growth in net asset value per share of the managed entities above a specified benchmark. Settled annually through the issue
of equity instruments (note 15).
•Agreement 2. Share of distributed returns to the investor on the disposal of portfolio assets in excess of capital contributed and agreed preferred
return.
Revenue under agreement 1 is calculated at 31 December each year and is settled in shares shortly afterwards. There are no claw back provisions under
agreement 1. No revenue has been recognised under agreement 2 due to the uncertainty over timing and amount of revenue that will be received.
Transaction fee revenue is recognised at a point in time when the relevant acquisition, divestment or lease transaction is completed and the Group becomes
entitled to consideration. Transaction fees comprise 1.25% of the acquisition or divestment cost of land and improvements and a fixed fee of $30,000 for
lease agreements.
Fee revenue from one external customer within the Rural Land Management segment exceeded 10% of the Group's consolidated revenue and amounted to
$1,801,000 (2025: $2,733,000).
Dividend income
Other income in the Parent Operations segment comprises dividends received from Investment held at FVOCI (note 15) and rental income from an
investment property (note 16). Dividend income is recognised when the Group's right to receive payment is established. Dividends received on equity
investments designated at fair value through other comprehensive income are recognised in profit or loss unless they clearly represent a recovery of part of
the cost of the investment.
Rental income
Rental income is recognised on a straight-line basis over the term of the lease. Rental payments are charged monthly in accordance with the lease
agreement
Interest income
Interest income is recognised using the effective interest method and accrues over time by reference to the principal outstanding and the applicable
effective interest rate. Interest income primarily relates to loan advances and cash deposits.
5. Discontinued operations
On 28 August 2025, Allied announced a conditional agreement to sell 100% of NZ Farmers Livestock Limited ('NZFL') and its subsidiaries (together the 'NZFL
group') to Rural Livestock Limited (the 'purchaser').
The NZFL group consisted of two of the Group’s reported segments:
•Livestock services, an agency business facilitating livestock transactions and the procurement and export of veal.
•Financial services, which provided and referred livestock finance to farmer clients.
The sale was completed on 1 December 2025 and the NZFL group was deconsolidated from the group at that point. Allied has:
•derecognised the assets and liabilities of, and any attributable non-controlling interests in, the NZFL group; and
•recognised the fair value of the purchase price for the sale of the NZFL Group.
Due to the Group’s continuing involvement in the NZFL finance loan book, this was not derecognised on 1 December 2025. Refer to further information
below.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
28
5. Discontinued operations (continued)
5.1 Purchase price components and fair value
The following is a summary of the purchase price components and their fair values on sale completion date:
•Completion payment $5,828,000 – cash payment due on completion of the sale and has been received.
•Net working capital adjustment $50,000 – a deferred payment in relation to a working capital adjustment, which has been received in May 2026.
•The total fair value of the sale price was $5,878,000.
5.2 Carrying amount of assets and liabilities of the NZFL group derecognised on 1 December 2025:
2026
Notes$ '000
The carrying amounts of the assets and liabilities of the NZFL group derecognised on 1 December 2025:
Property, plant and equipment
19 957
Right-of-use assets
20 1,683
Goodwill
13 742
Deferred tax assets
9 295
Investments
5
Inventories
5
Other receivables and prepayments
223
Intangible assets
14 13
Finance receivable
1,485
Trade receivables
22,981
Cash and cash equivalents
3,667
Total assets
32,056
Income tax payable
(144)
Borrowings
(4,550)
Trade and other payables
(23,502)
Lease liabilities
20 (1,838)
Employee benefits
(1,179)
Total liabilities
(31,213)
Net assets of the NZFL group
843
5.2.1 NZFL loan book
NZFL's livestock finance loan book ($4,141,000) and associated borrowings ($2,548,000) were transferred to the purchaser. However, under the terms of the
sale and purchase agreement, settlement of the net equity interest in the loan book was deferred until the underlying loan book had been fully repaid.
The Group assessed the arrangement in accordance with NZ IFRS 9 Financial Instruments and concluded that it retained continuing involvement in the
transferred receivables. At 1 December 2025, the Group continued to recognise receivables of $2,806,000 together with a corresponding continuing
involvement liability of $1,727,000, reflecting the Group's 67.77% interest in the loan book.
By May 2026, the loan book was fully repaid and the Group settled its continuing involvement obligation and this has been recognised in the gain on sale for
disposal net of cash received from the discontinued operations.
2026
$ '000
Purchase price for sale received (note 5.1) 5,878
Cash and cash equivalents deconsolidated (note 5.2)
(3,667)
Disposal of discontinued operation, net of cash disposed during the period
2,211
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
29
5. Discontinued operations (continued)
5.3 Gain on sale of the NZFL group
The gain on sale of the NZFL group has been included in the total profit or loss from discontinued operations presented in the Group’s consolidated
statement of comprehensive income:
2026
$ '000
Fair value of the purchase price
5,878
Less carrying amount of net assets as of the date of sale
843
Less costs of disposal
277
Effect of derecognition of the carrying amount of non-controlling interests in the NZFL group
701
Effect of new liability recognised in relation to Allied's continuing involvement in NZFL's loan book
1,728
Gain on sale of the NZFL group
2,329
5.4 Discontinued operations
5.4.1 Results from discontinued operations
Results from the discontinued operations have been presented as a single line in the consolidated statement of comprehensive income. This includes
reclassification of comparatives as required under NZ IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The following is a breakdown:
20262025
Notes$ '000$ '000
Income
Commission and fee income
7,004 16,263
Sale of goods
8,228 10,006
Other income
176 391
Total income
15,408 26,660
Expenses
Changes in inventories
(6,545) (8,308)
Employee benefits expense
(4,822) (10,193)
Depreciation and amortisation
(287) (698)
Other operating expenses
(1,535) (3,843)
Total expenses
(13,189) (23,042)
Interest income
302 491
Interest expense
(140) (268)
Profit before tax
2,381 3,841
Tax expense
9(3,486) (226)
(Loss)/profit after tax
(1,105) 3,615
Gain on sale of discontinued operations
2,329 —
Profit from discontinued operations
1,224 3,615
Attributable to:
- Shareholders of Allied Farmers Limited ('Allied')
1,600 2,645
- Non-controlling shareholders of NZ Farmers Livestock Limited group
(376) 970
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
30
5. Discontinued operations (continued)
5.4.2 Cash flows from discontinued operations
The net cash flows generated/(incurred) by discontinuing operations were as follows:
20262025
$ '000$ '000
Net cash flows from operating activities
(82) 5,517
Net cash flows from investing activities
2,217 512
Net cash flows from financing activities
1,215 (3,535)
Net cash flows from discontinuing operations
3,350 2,494
5.4.3 Significant accounting policies in relation to discontinued operations
Revenue
Commission income on facilitating a livestock sale, grazing or forward livestock sale is recognised when the sale has been arranged for the provision of
livestock for a vendor and purchaser, net of rebates. The Group is acting as an agent as it does not control the goods before they are transferred from the
vendor to the purchaser.
Forward delivery contracts in relation to herd sales on which commission income is earned contain an element of variable consideration due to the
timeframe between when the sale is agreed and its completion. At year end, the variable consideration is taken into account in the revenue recognised.
Sale of goods (veal meat and skins) revenue is recognised once goods are delivered to the customer.
Fee income relates to RFID scanning fees, yard fees charged at saleyards and valuation fees. The income is recognised when livestock are scanned, a sale
is agreed within the auction or when the livestock are weighed. The Group is acting as a principal as it is primarily responsible for the service rendered and is
able to set a price.
Income from referring customers to Heartland Bank Limited is recognised when the financing transaction has been arranged between Heartland Bank
Limited and the borrower.
All revenue noted above, is recognised at a point in time, in accordance with NZ IFRS 15, and performance obligations are met upon delivery of goods.
6. Earnings per share
20262025
Earnings per share - basic (cents) 10.37 9.97
- Discontinued 5.55 9.18
- Continuing 4.82 0.79
Earnings per share - diluted (cents) 10.18 9.84
- Discontinued 5.45 9.06
- Continuing 4.73 0.78
Profit from continuing operations attributable to shareholders of Allied Farmers Limited
Basic and diluted 1,389 227
Weighted number of shares ('000)
Basic 28,806 28,806
Diluted* 29,373 29,189
Earnings per share (cents)
Basic 4.82 0.79
Diluted* 4.73 0.78
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
31
6. Earnings per share (continued)
20262025
Profit from discontinued operations attributable to shareholders of Allied Farmers Limited
Basic and diluted 1,600 2,645
Weighted number of shares ('000)
Basic 28,806 28,806
Diluted* 29,373 29,189
Earnings per share (cents)
Basic 5.55 9.18
Diluted* 5.45 9.06
*The Group has performance share rights on issue under its long term incentive scheme. During the year ended 30 June 2026, 239,217 performance share
rights were granted to the Managing Director and employees, and 56,019 rights were forfeited following an employee departure. As at 30 June 2026, a total
of 566,262 performance share rights remained outstanding (2025: 383,064). These rights were considered in the calculation of diluted earnings per share.
There were no other changes during the year, nor are there any dilutive potential shares, warrants, options, or convertible instruments at the end of either
the current or preceding year.
7. Employee benefits expense
Short-term employee benefits including wages and salaries and accumulating sick leave that are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period
and are measured at the amounts expected to be paid when the liabilities are settled. The Group recognises a liability and an expense for bonuses where
they are contractually obliged or where there is a past practice that has created a constructive obligation.
Defined contribution plans (including KiwiSaver) are post-employment benefit plans under which the Group pays fixed contributions into a separate entity
and will have no legal or constructive obligation to pay further amounts.
Restated¹
20262025
Notes$ '000$ '000
Reflected within employee benefits expense
Short term employee benefits
(708) (432)
Defined contribution benefits
(19) (34)
(727) (466)
Reflected in other operating expenses
Directors fees
25 (155) (145)
Share based payments
25 (102) (28)
(257) (173)
8. Net interest income/(expense)
Finance income includes interest income derived from financial assets. Interest income from a financial asset is recognised when it is probable that the
economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that asset's net carrying amount on initial recognition.
Finance expense includes interest expense incurred on borrowings, loans held at FVTPL and any loss on fair value of derivative instruments. Interest expense
is recognised using the effective interest method.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
32
8. Net interest income/(expense) (continued)
Restated¹
20262025
Notes$ '000$ '000
Interest income:
Loan advance 445 389
Cash at banks 75 36
Total interest income - financial assets at amortised cost 520 425
Interest expense on bank borrowings at amortised cost17 (108) (208)
Interest expense on borrowings held at FVTPL18 (272) (223)
Interest on lease liabilities20 (5) —
Total interest expense (385) (431)
Net interest income/(expense) 135 (6)
¹Restated for the impact of discontinued operations (note 5).
9. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in
equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the consolidated statement of
comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.
The Group's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
9.1 Income tax recognised in consolidated statement of comprehensive income
20262025
$ '000$ '000
Income tax expense/(benefit) comprises:
Continuing operations
Current tax benefit (2,296) —
Deferred tax benefit — —
(2,296) —
Discontinuing operations
Current tax expense 2,471 73
Deferred tax expense 1,015 153
3,486 226
Income tax expense 1,190 226
Reconciliation of prima-facie income tax to tax expense:
Profit before tax 3,803 4,064
Tax at the rate of 28% (2025: 28%) 1,065 1,138
Expenditure not deductible for tax 879 13
Other permanent differences (223) 107
Temporary differences 54 13
Derecognition in deferred tax asset 200 153
Prior period adjustment (39) —
Use of groups tax losses (746) (1,650)
Tax expense for the year 1,190 226
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
33
9. Taxation (continued)
Tax losses have been transferred between NZFL and AFL in respect of the 2025 year, and further losses are expected to be transferred for the 2026 year
(resulting in a receivable of $510,000 for AFL at 30 June 2026, being the remaining amount payable by NZFL for the use of those losses). This has resulted in a
tax expense for NZFL and an offsetting benefit for AFL. This has an overall nil effect on tax expense on a consolidated basis, however it is reflected in the
disclosure of tax expense for continuing and discontinued operations.
9.2 Deferred tax assets and liabilities
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the
corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference
arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised,
based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the
end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Opening balance
Recognised in profit
or loss
Derecognised on
disposal of NZFLClosing balance
2026$ '000$ '000$ '000$ '000
Right of use assets (547) 33 471 (43)
Lease liabilities 588 (14) (525) 49
Loans held at FVTPL and other financial liabilities 71 (952) (53) (934)
Employee benefits 246 95 (185) 156
Tax loss carry forward 953 (200) — 753
Other — 23 (3) 19
Total deferred tax asset 1,311 (1,015) (295) —
Opening balance
Recognised in profit
or loss
Derecognised on
disposal of NZFLClosing balance
2025$ '000$ '000$ '000$ '000
Right of use assets (506) (41) — (547)
Lease liabilities 506 82 — 588
Loans held at FVTPL and other financial liabilities 61 10 — 71
Employee benefits 238 8 — 246
Tax loss carry forward 1,165 (212) — 953
Total deferred tax asset 1,464 (153) — 1,311
The Group unrecognised unused tax losses as at 30 June 2026 which are estimated at total $173,854,432 (2025: $177,206,827). The ability to utilise tax
losses, given the age of the losses, is dependent upon continuing to meet shareholder continuity requirements of prevailing income tax legislation.
As at reporting date, imputation credits available to the shareholders of only the Company in subsequent periods totalled $29,000 (2025: $462).
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
34
10. Cash and cash equivalents
Cash and cash equivalents include cash and term deposits with financial institutions that have original maturities of 90 days or less. Cash is held at banks with
a credit rating of A- or higher. Interest on the term deposit accrues at 3.15% per annum.
Cash and cash equivalents at the end of the reporting period as shown in the consolidated statement of cash flows can be reconciled to the related items in
the consolidated statement of financial position as follows:
20262025
$ '000$ '000
Cash at bank 2,694 9,660
Term deposits 9,090 —
Total cash and cash equivalents 11,784 9,660
11. Trade and other receivables
Trade receivables are non-derivative financial assets and measured at amortised cost less impairment. The amount of the loss allowance is based on the
simplified Expected Credit Loss (ECL) approach which involves the Group estimating the lifetime ECL at each balance date. The lifetime ECL is calculated using
a provision matrix based on historical credit loss experience and adjusted for forward looking factors specific to the debtors and the economic environment.
Expected credit losses for the year ended 30 June 2026 are nil (refer to note 27).
20262025
Notes$ '000$ '000
Trade receivables 149 10,216
Finance receivables — 1,454
Tax loss offset receivables9 510 —
Other receivables 133 199
Total trade and other receivables 792 11,869
12. Loan advance
The Group advanced $3,000,000 to a substantial dairy farming operation in South Canterbury to fund its working capital during the comparative financial
year.
The loan advance is held to collect contractual cash flows solely of principal and interest. Consequently, it also requires an assessment of expected credit
losses. Based on the two-step approach when credit was first extended, the initial creditworthiness of the borrower and initial expectations of credit losses
were considered in determining pricing and other conditions of the financial instrument. Management has reassessed to determine whether any subsequent
changes in those loss expectations had occurred. This assessment was based on history of payments, whether a change in the credit worthiness of the
borrower had occurred giving rise to a change in expectations that the borrower is able to meet their commitments, current and future economic factors.
Information from the borrowers, including supportable forward looking information and external sources, do not indicate a change in credit worthiness.
Contractual commitments including cashflows have and continue to be met, are current and not past due.
The loan is secured by a second ranking (behind the Senior Finance Parties) General Security Deed provided by the borrower. As further security other
companies in the same group as the borrower have also provided a second ranking security (behind the Senior Finance Parties) also secured by General
Security Deed. The loan bears interest at 15.0% per annum, payable monthly, and has a term of three years. During the year, a principal repayment of
$500,000 was received in accordance with the facility terms. A further principal repayment of $500,000 is due in April 2027, with the payment ranking ahead
of the Senior Finance Parties. At 30 June 2026, the borrower was compliant with all financial covenants associated with the facility and no indicators of a
significant increase in credit risk were identified. Based on the Group's assessment of expected credit losses under NZ IFRS 9, the associated expected credit
loss allowance was assessed as immaterial.
20262025
$ '000$ '000
Opening balance
3,000 —
Amounts drawn during the year
— 3,000
Principal repayments
(500) —
Closing balance
2,500 3,000
Current
500 500
Non-current
2,000 2,500
2,500 3,000
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
35
13. Goodwill
20262025
$ '000$ '000
Redshaw (within livestock services operating segment) — 642
NZFLFL — 100
Total — 742
Goodwill in Redshaw arose on the acquisition of a controlling interest in Redshaw Livestock Limited. The goodwill was derecognised upon disposal of the
NZFL Group and is included in the gain or loss on disposal. Refer to note 5.
14. Intangible assets
Intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment loss. Amortisation is recognised on a
straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with
the effect of any changes in estimate being accounted for on a prospective basis.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from the
derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in
profit or loss when the asset is derecognised.
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss (if any).
NZL Management Contract
In November 2020, NZL entered into an exclusive management agreement with NZRLM to provide NZL with management investment and administrative
services (Management Agreement). NZL Management Contract was recognised as an intangible asset in March 2023 when Allied completed the purchase of
the 50% of NZRLM that it did not already own. NZRLM also acts as manager for the Investor in respect of its interest in the LP. The Management Agreement
contains restrictions on transferability, whereby NZRLM must first offer any proposed assignment or transfer of the agreement to NZRLC and, failing
acceptance, obtain NZRLC's prior written consent before any transfer can occur.
At the reporting date, the NZL Management Contract has a remaining amortisation period of 17 years.
The recoverable amount of the management contract is based on management forecasts of future financial performance together with an assessment of the
useful life of the asset, and therefore there is inherent estimation uncertainty.
Management determined the recoverable amount of the intangible asset at 30 June 2026 from a value-in-use calculation. This included the following key
assumptions and inputs:
•Asset Growth in the portfolio being managed - 2.3% per annum (2025: 2.3%).
•The level of acquisitions and divestments to the portfolio - 5% per annum (2025: 5%).
•The discount rate to ensure it reflects the specific risks relating to future financial performance - 6.1% (2025: 5.4%).
Based on the value-in-use calculation, no impairment was required at 30 June 2026 (2025: no impairment).
20262025
$ '000$ '000
NZL Management Contract
8,793 9,310
Software
4 50
Net carrying amount 8,797 9,360
NZL Management
ContractSoftwareTotal
Cost:Notes$ '000$ '000$ '000
Balance at 01 July 2024 10,474 922 11,396
Additions
— 28
28
Balance at 30 June 2025 10,474 950 11,424
Additions
— 1
1
Derecognised on disposal of discontinued operations5 — (943)
(943)
Balance at 30 June 2026 10,474 8 10,482
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
36
14. Intangible assets (continued)
NZL Management
ContractSoftwareTotal
Accumulated amortisation:Notes$ '000$ '000$ '000
Balance at 01 July 2024 (648) (806) (1,454)
Amortisation expense
(516) (94) (610)
Balance at 30 June 2025 (1,164) (900) (2,064)
Amortisation expense
(517) (34) (551)
Derecognised on disposal of discontinued operations
5 — 930 930
Balance at 30 June 2026 (1,681) (4) (1,685)
NBV at 30 June 2026
8,793 4 8,797
NBV at 30 June 2025
9,310 50 9,360
NBV at 30 June 2024
9,826 116 9,942
15. Investments held at FVOCI
New Zealand Rural Land Company Limited
At 30 June 2026, the Group holds 4,376,732 (2025: 3,933,110) shares in NZL representing a 2.99% ownership in NZL (2025: 2.71%). The shares in NZL are
equity investments quoted in an active market which the Group has designated as a financial asset at FVOCI as they are not held for trading. Using level 1
inputs, the fair value of these shares at 30 June 2026 is $4,245,430 (2025: $3,579,130).
Under the Management Agreement, NZL is to pay NZRLM a performance fee (note 4) which, subject to certain adjustments, is to be equal to 10% of the
increase in net asset value of NZL in each financial year. The performance fee for the year ended 30 June 2026 was settled by 358,667 shares of NZL
distributed to NZRLM (2025: 411,772 shares). Half of the shares issued in each financial year to satisfy the performance fee are subject to escrow
arrangements, under which NZRLM or any nominee agrees not to sell, transfer, assign or otherwise dispose of, or offer or agree to sell, transfer, assign or
otherwise dispose of, its right and title to, and beneficial interest in such shares for a five year period. 1,732,938 shares distributed to Allied Farmers Limited
were subject to this arrangement as at 30 June 2026 (2025: 1,553,605).
Dividends from NZL recognised in profit or loss in other income was $254,100 (2025: $136,129), with $84,955 reinvested and $169,145 received in cash
(2025: $136,129 paid in shares).
20262025
$ '000$ '000
New Zealand Rural Land Company Limited (NZL) 4,245 3,579
Other investments — 1
Total investments 4,245 3,580
20262025
$ '000$ '000
Opening balance 3,579 2,997
Dividends from NZL paid in shares 84 136
Shares issued under NZRLM performance fee arrangement 583 660
Change in value recognised in FVOCI reserves (1) (214)
Closing balance 4,245 3,579
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
37
16. Investment property
Investment property is property held either to earn rental income, for capital appreciation or for both.
Investment properties are initially measured at cost and subsequently measured at fair value with any change recognised in profit or loss. Any gain or loss
arising from a change in fair value is recognised in profit or loss.
Initial direct costs incurred in negotiating and arranging operating leases and lease incentives granted are added to the carrying amount of the leased asset.
Investment properties are derecognised when they have been disposed of and any gains or losses incurred on disposal are recognised in profit or loss in the
year of derecognition.
Agricultural property
In September 2024, an Australian-based private credit fund approached Allied Farmers to participate in a sales process of agricultural property assets. The
properties were acquired for $10,500,000 with a corresponding liability of the same notional value incurred (note 18).
The properties include a dairy farm and support block (leased to a single tenant), a lifestyle property, and an industrial site (both currently vacant, with
leasing efforts underway).
Refer to note 18 for restrictions on the realisability of investment property or the remittance of income and proceeds of disposal (2025: none). There are
currently no obligations to construct or develop the existing investment properties.
Items of Income and Expense
During the year $226,000 (2025: $186,000) was recognised in the profit or loss in relation to rental income from the investment properties. Direct operating
expenses, including repairs and maintenance, arising from both the properties that generated rental income and those investment properties that did not
generate rental income during the year amounted to $39,000 (2025: $8,000).
Fair value of investment properties
20262025
$ '000$ '000
Agricultural property8,045 10,500
20262025
$ '000$ '000
Opening balance
10,500 —
Transaction price
— 10,500
Fair value loss at inception
— (932)
Gain/(loss) arising from change in fair value in the period
(2,455) 932
Closing balance (level 3 recurring fair values)
8,045 10,500
Investment properties are classified as level 3 (inputs are unobservable for the asset or liability) under the fair value hierarchy on the basis that adjustments
must be made to observable data of similar properties to determine the fair value of an individual property. During the year, there were no transfers of
investment property between levels of the fair value hierarchy (2025: no transfers).
The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a
willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and
without compulsion.
The Group's policy is to value the properties and utilise external independent valuers, having appropriate recognised professional qualifications and recent
experience in the location and category of the property being valued, namely Summit Rural for the farming properties and Greenland Valuers for the
industrial site.
The valuation technique and significant unobservable inputs used in determining the fair value measurement of investment property, as well as the inter-
relationship between key unobservable inputs and fair value at 30 June 2026, is detailed in the table below.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
38
16. Investment property (continued)
Valuation techniques and inputs used
Nature of property
Fair value
Valuation techniqueUnobservable inputRate$ '000
Support block 1,540 Income approach
(1)
Capitalisation rate5.10%
Dairy farm 2,650 Income approach
(1)
Capitalisation rate5.30%
Industrial site - main and secondary 3,500
Market approach with
adjustment
(2)
Downward adjustment to completed earthworks30%
Probability factor of development proceeding50%
Lifestyle block 355 Market approach
(3)
——
Total fair value 8,045
(1)
These assets are subject to a long-term lease. Their fair value has been calculated by dividing the rental income by the market capitalisation rate (the
market's required rate of return).
(2)
The fair value has been determined by comparing the assets to similar assets (excluding completed earthworks) for which recent sales data is available.
The value attributable to the earthworks has been determined based on the tendered cost of the completed works, adjusted downwards to account for:
•the potential need for remediation or general tidying, and
•the fact that the works are tailored for a specific use, meaning alternative users may not be willing to pay the full cost of these improvements.
(3)
The basis of the fair value has been determined by comparing the assets to similar assets for which recent sales data is available.
Valuation and sensitivity
The Group has assessed possible changes in key assumptions and their impact on the fair value of the properties at 30 June 2026.
Fair value
Sensitivity
$' 000Unobservable inputRateSensitivity
+2%-2%
Support block
1,540Capitalisation rate5.10%(434)992
Dairy farm
2,650Capitalisation rate5.30%(723)1,614
+25%-25%
Industrial site - main and secondary3,500
Downward adjustment to completed earthworks30%(623)562
Probability factor of development proceeding50%(1,565)1,565
Lifestyle block
355————
Total fair value
8,045(3,345)4,733
There were no changes to the valuation techniques of level 3 fair value measurements in the period. The fair value measurement is based on the above
item’s highest and best use, which does not differ from their actual use.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
39
17. Borrowings
Borrowings are recognised initially at fair value, net of any directly attributable transaction costs incurred. Bank borrowings are subsequently measured at
amortised cost using the effective interest rate method.
Bank borrowings at amortised cost - Heartland Bank Limited
The Heartland Bank Limited borrowings were secured by way of a first ranking General Security Agreement and cross guarantee against the assets of Allied
Farmers Limited and New Zealand Rural Land Management Limited Partnership. Principal repayments were made monthly, with the final contractual
repayment scheduled for March 2028. The interest rate is calculated on the 90-day BKBM rate plus a margin of 4% (2025: unchanged). The facility was not
subject to any financial covenants and was repaid in full during the year.
Payable within 1 year Payable after 1 yearUndrawnInterest rate
$ '000$ '000$ '000%
2026
Bank borrowings at amortised cost - Heartland Bank Limited— — — —
Total— — —
2025
Bank borrowings at amortised cost - Heartland Bank Limited731 1,338 1,741 Variable at 7.32%
Total731 1,338 1,741
18. Loans held at FVTPL
Loans have been designated as measured at fair value through the profit or loss. For those liabilities measured at fair value through the profit or loss,
transaction costs are expensed as incurred.
Loans are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date.
Payable within 1 year Payable after 1 yearUndrawnInterest rate
$ '000$ '000$ '000%
2026
Loans held at FVTPL - MC Redlands Pty Ltd— 7,666 — Fixed at 2.59%
Total— 7,666 —
2025
Loans held at FVTPL - MC Redlands Pty Ltd— 10,496 — Fixed at 2.59%
Total— 10,496 —
Loans held at FVTPL - MC Redlands Pty Ltd
In September 2024, an Australian based private credit fund approached the Group to participate in a sales process of agricultural property assets. Properties
were acquired for $10,500,000 (note 16) with a corresponding liability of the same notional value assumed.
To facilitate the transaction, a wholly owned subsidiary, Allied FLA Limited, was established to hold and ring-fence the assets and the associated liability.
The financing arrangement includes a profit-sharing feature under which the lender is entitled to participate in the excess proceeds arising on the sale of the
properties above a threshold value of $11.0 million. The lender's return comprises both fixed interest and a variable return linked to the realised value of the
underlying property assets. The amount payable is determined on an individual property basis.
The transaction is legally structured as an acquisition of the properties with the consideration settled via a loan (nominal value of $10,500,000 with the
properties pledged as collateral) and a redeemable preference share which effectuates the profit share. Although the contractual value of the loan is
$10,500,000 (excluding interest and profit share feature) the final amounts payable to the lender is limited to the proceeds from the sale of the property.
The terms of the loan are:
•repayable in three years from the drawdown date in late September 2024;
•no principal reductions between the date the loan was entered into and final repayment date;
•interest at a rate of 1% per annum is payable in monthly instalments, which was subsequently amended to be deferred with the lenders agreement;
•interest at a rate of 1.59% per annum which is payable at the final repayment date. This interest is capped in that it cannot exceed a total of
$500,000.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
40
18. Loans held at FVTPL (continued)
The facility is secured by mortgages over the four properties held by special purpose vehicle, Allied FLA Limited and a general security agreement over its
assets. The funding arrangement is contractually ring-fenced within Allied FLA Limited. The facility is not guaranteed by Allied Farmers Limited or any other
entity within Allied Farmers Group, and the lender’s contractual recourse of the facility is limited to Allied FLA Limited and its assets. The facility matures
three years after the first drawdown date, September 2027.
The facility contains provisions intended to facilitate an orderly sale of the secured properties where certain conditions are met, may provide additional time
for repayment while those sale processes are completed.
Once all properties and other assets of Allied FLA Limited have been realised and the contractual conditions have been satisfied, Allied Farmers Limited may
acquire the lender’s remaining rights and obligations under the finance documents for $1.
The Group considers that the loan and redeemable preference share are a single instrument on the basis that the agreements:
•were entered into simultaneously and in contemplation of one another with the same counterparties,
•are interdependent and collectively allocate the proceeds from the sale of the properties.
The single instrument is a financial liability that has been designated at fair value through profit or loss. This is on the basis that the performance is managed
and evaluated on a fair value basis and to avoid the accounting mismatch arising from the measurement of funding arrangements and its related investment
property on different bases.
Contractual interest incurred under the funding arrangement is recognised separately within finance expenses. Interest expense incurred totalled $272,000
(2025: $224,000). The accumulated interest of $501,000 has been capitalised to the loan.
20262025
$'000$ '000
Opening Balance
10,496 —
Transaction Value
— 10,500
Fair value gain on initial recognition
— (932)
Interest
501 —
Fair value (gain)/ loss during the year
(3,331) 928
Closing Balance
7,666 10,496
Cumulative fair value gain for period
(3,331) (4)
The fair value of the financial liability has been calculated based on the expected future cash outflows of the two legal components, the loan and the profit
share component (redeemable preference share) discounted at the applicable market rates for each respective component. The future cash outflows are
based on the expected receipts from sale of the property and are a material input into the fair value of the liability calculation.
The Group has determined that the fair value of the financial liability on 30 June 2026 using the same valuation approach, with updated assumptions. The
interest component forms part of the fair value movement.
Key assumptions in fair value measurement
20262025
$'000$ '000
Fair value of investment property8,04510,500
%%
Fair value growth rate in properties
5.00 % 5.00 %
Loan component: Cost of debt
4.22 % 4.79 %
Profit share component: Weighted average cost of capital
8.14 % 8.50 %
The most material input into the fair value calculation is the fair value of investment property (note 16). The instrument is classified as level 3 in the NZ IFRS
13 fair value hierarchy as inputs used to calculate its fair value are unobservable.
The Group has concluded that their credit risk impact on the fair value measurement is immaterial, and hence the full fair value movement has been
reflected in the profit or loss, with no impact in other comprehensive income.
The Group has assessed possible changes in key assumptions and their impact on the fair value of the financial liability.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
41
18. Loans held at FVTPL (continued)
Sensitivity analysis
DecreaseIncrease
$'000$ '000
-42%*59%*
Reasonably possible change in fair value of investment property
(3,188) 3,651
-5%+5%
Fair value growth rate in properties sensitivity
(383) 383
+0.5%-0.5%
Cost of debt sensitivity
(42) 42
*Represents reasonably possible percentage change in investment property fair value (Note 16)
19. Property, plant & equipment
All property, plant and equipment are stated at cost less any accumulated depreciation and accumulated impairment losses. Cost includes expenditure that
is directly attributable to the acquisition of the asset. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined
by discounting the amounts payable in the future to their present value as at the date of acquisition.
Depreciation is recognised to write off the cost of assets less their residual values over their useful lives, using the straight-line method. The estimated useful
lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for
on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use
of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
For major classes of property, plant and equipment, the following depreciation rates have been used:
•Buildings: 8 - 30 years
•Plant and equipment: 2.5 - 30 years
•Motor Vehicles: 1-3 years
Depreciation methods, useful lives and residual values are reviewed at reporting date and adjusted if appropriate.
As part of the disposal of the NZFL Group, all property, plant and equipment relating to land, buildings and motor vehicles were derecognised (note 5).
20262025
$ '000$ '000
Land
— 605
Buildings
— 154
Plant and equipment
29 145
Motor vehicles
— 145
Net carrying amount29 1,049
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
42
19. Property, plant & equipment (continued)
LandBuildings
Plant and
equipment
Motor vehicles
Total
Cost:Notes$ '000$ '000$ '000$ '000$ '000
Balance at 30 June 2025 605 745 643 327 2,320
Additions
— — 55 — 55
Disposals
— — — (183) (183)
Derecognised on disposal of discontinued operations
5 (605) (745) (654) (144) (2,148)
Balance at 30 June 2026 — — 44 — 44
Accumulated depreciation:$ '000$ '000$ '000$ '000$ '000
Balance at 30 June 2025 — (591) (498) (182) (1,271)
Depreciation expense
— (21) (18) (4) (43)
Eliminated on disposals of assets
— — — 109 109
Derecognised on disposal of discontinued operations
5 — 613 501 77 1,191
Balance at 30 June 2026 — — (15) — (15)
NBV at 30 June 2026
— — 29 — 29
NBV at 30 June 2025
605 154 145 145 1,049
NBV at 30 June 2024
626 244 154 468 1,492
20. Leases
Leases are recognised as a right-of-use asset and a corresponding lease liability at the date on which the leased asset is available for use by the Group. Each
lease payment is allocated between the lease liability and finance cost. The finance cost is recognised in profit or loss over the lease term so as to produce a
constant periodic rate of interest on the remaining balance of the lease liability. The right-of-use asset is depreciated on a straight-line basis over the shorter
of the asset's useful life and the lease term.
Lease liabilities are initially measured at the present value of the following lease payments:
•fixed payments (including in-substance fixed payments), less any lease incentives receivable;
•variable lease payments that are based on an index or rate;
•amounts expected to be payable by the lessee under residual value guarantees;
•the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
•payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
Lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined,
the Group uses its incremental borrowing rate.
Right-of-use assets are measured at cost, comprising:
•the amount of the initial measurement of the lease liability;
•any lease payments made at or before the commencement date, less any lease incentives received;
•any initial direct costs; and
•restoration costs.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term
leases are leases with a lease term of 12 months or less.
As part of the disposal of the NZFL Group, all right-of-use assets and associated lease liabilities relating to regional offices, motor vehicles and properties
were derecognised (note 5). Subsequent to the disposal, the Group entered into a new property lease.
20262025
$ '000$ '000
Property
152 77
Motor vehicles
— 1,861
Plant & equipment
— 16
Net carrying amount 152 1,954
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
43
20. Leases (continued)
Right-of-use assets
PropertyMotor vehiclesPlant & equipmentTotal
Cost:Notes$ '000$ '000$ '000$ '000
Balance at 30 June 2025 620 3,936 57 4,613
Additions
170 42 —
212
Disposals
— (140) —
(140)
Derecognised on disposal of discontinued operations
5 (620) (3,838) (57)
(4,515)
Balance at 30 June 2026 170 — — 170
Accumulated depreciation:$ '000$ '000$ '000$ '000
Balance at 30 June 2025 (543) (2,075) (41) (2,659)
Depreciation expense
(45) (185) (6) (236)
Eliminated on disposals of assets
— 45 — 45
Derecognised on disposal of discontinued operations
5 570 2,215 47 2,832
Balance at 30 June 2026 (18) — — (18)
NBV at 30 June 2026
152 — — 152
NBV at 30 June 2025
77 1,861 16 1,954
NBV at 30 June 2024
152 1,626 30 1,808
Lease liabilities
PropertyMotor vehiclesPlant & equipmentTotal
Notes$ '000$ '000$ '000$ '000
Balance at 01 July 2024 171 2,033 31 2,235
Leases entered into during the period — 718 — 718
Interest expense 19 178 2 199
Repayments (27) (1,009) (17) (1,053)
Balance at 30 June 2025 163 1,920 16 2,099
Leases entered into during the period 170 42 — 212
Interest expense 15 69 1 85
Repayments (42) (334) (7) (383)
Derecognised due to discontinued operations5 (131) (1,697) (10) (1,838)
Balance at 30 June 2026 175 — — 175
21. Trade and other payables
20262025
$ '000$ '000
Trade payables 360 10,310
Accrued interest on loans at FVTPL — 229
PAYE payable 17 —
Provision for holiday pay 31 581
Other payables 377 1,761
Closing balance 785 12,881
Trade payables and other payables that have a contractual obligation are measured at initial recognition at fair value, and are subsequently carried at
amortised cost. Trade payables are unsecured and are usually paid within 30 days of recognition.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
44
22. Share capital
2026202520262025
Ordinary shares issued and fully paid
Number of shares
'000
Number of shares
'000$ '000$ '000
Balance at 01 July28,806 28,806 158,204 158,204
Issue of ordinary shares— — — —
Balance at 30 June28,806 28,806 158,204 158,204
All ordinary shares rank equally as to voting, dividends and distribution of capital on liquidation. There is no par value.
23. Non-controlling interests
Transactions with non-controlling interest during the year included:
•During the year ended 30 June 2025, NZFL completed a share buyback and subsequent share cancellation, returning $8,040,000 to its shareholders.
The portion of the buyback attributable to non-controlling shareholders was $2,591,000. Payments of $1,955,000 were made to non-controlling
shareholders during the year ended 30 June 2025, with the remaining $635,000 settled during the year ended 30 June 2026. The share buyback and
cancellation were accounted for as transactions with owners in their capacity as owners and reduced the carrying amount of non-controlling
interests during the year ended 30 June 2026 by $635,000.
•NZFL and Redshaw Livestock Limited declared dividends, of which $668,000 was distributed to non-controlling shareholders (2025 $724,000).
Following the disposal of the NZFL Group (note 5), all related non-controlling interests were derecognised by 30 June 2026.
24. Subsidiaries
The consolidated financial statements include the financial statements of Allied Farmers Limited and the operating subsidiaries listed below.
Subsidiaries are entities controlled by the Group. Control is achieved when the Group is exposed to, or has the rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. The financial records of operating subsidiaries are
included in the consolidated financial statements from the date on which control commences until the date on which control ceases.
20262025
Notes Ownership interest Ownership interest
Operating subsidiaries of the parent
Allied Farmers (New Zealand) LimitedInvestment100%100%
Allied Farmers Rural LimitedInvestment100%100%
Rural Funding SolutioNZ LimitedFinance100%100%
New Zealand Rural Land Management GP LimitedRural property management100%100%
Allied FLA Limited Investment100%100%
ALF Nominees LimitedNon trading100%100%
Subsidiaries of Allied Farmers Rural Limited
NZ Farmers Livestock LimitedLivestock agency and finance5—%68%
Subsidiaries of NZ Farmers Livestock Limited5
Farmers Meat Export LimitedMeat processing and trading—%100%
NZ Farmers Livestock Finance LtdLivestock finance—%100%
Redshaw Livestock LimitedLivestock agency—%52%
Subsidiaries of Allied Farmers (New Zealand) Limited
Allied Farmers Property Holdings LimitedNon trading100%100%
QWF Holdings LimitedNon trading100%100%
Clearwater Hotel 2004 LimitedNon trading100%100%
Lifestyles of New Zealand Queenstown LimitedNon trading100%100%
LONZ 2008 LimitedNon trading100%100%
LONZ 2008 Holdings LimitedNon trading100%100%
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
45
24. Subsidiaries (continued)
20262025
NotesOwnership interestOwnership interest
Subsidiaries of Allied Farmers Property Holdings
UFL Lakeview LimitedNon trading100%100%
5M No. 2 LimitedNon trading100%100%
Subsidiaries of New Zealand Rural Land Management GP
Limited
NZRLM LimitedNon trading100%100%
All companies within the Group are incorporated in and have their principal place of business in New Zealand, and have a reporting date of 30 June.
25. Related parties
Identity of related parties
The Group has a related party relationship with other related entities. Related parties include key management personnel, their related parties, or directors.
The below amounts include both continuing and discontinued operations.
20262025
$ '000$ '000
Key management personnel ('KMP') compensation
Short term employee benefits 506 563
Directors fees 155 155
Post employment benefits 11 19
Total 672 737
* No debts with key management personnel were written off during the year (2025: nil).
20262025
$ '000$ '000
Managing director
Contract for service 396 375
Short term incentive 130 281
Share based payments 74 28
Total 600 684
During the year, 144,032 Performance Share Rights were issued to the managing director under a long-term incentive scheme (2025: 144,032).
20262025
$ '000$ '000
Transactions with entities with common director - Heartland Bank Limited
Continuing operations:
Borrowings at reporting date
— 2,068
Interest paid on borrowings at amortised cost
108 205
Discontinued operations:
Referral fees received
169 364
Vehicle lease liability at reporting date*
— 139
Interest paid on vehicles lease liabilities*
6 14
Total
283 2,790
* Relates to NZ Farmers Livestock entering into four vehicle leases with KIA Finance provided by Heartland Bank Limited. The relevant leases and right-of-use
assets have been derecognised as part of the disposal of NZFL Group. Please see note 5.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
46
25. Related parties (continued)
20262025
$ '000$ '000
Transactions with entities with common directors
Discontinued operations:
Livestock sales
763 1,352
Livestock purchases
1,041 1,955
Commission revenue
17 63
Return of capital to non-controlling shareholders of NZFL
635 1,955
Dividends received as non-controlling shareholders of NZFL
653 724
Accounts payable by NZFL/AFL
6 141
No debts with key management personnel were written off during the year (2025: nil)
Management fee revenue
NZRLM has been appointed as the external manager of NZL under a management agreement. As Manager, NZRLM is responsible for all management
functions, including:
•providing administrative and general services;
•sourcing and securing potential investors and communicating with investors;
•sourcing opportunities for the sale and purchase of land, and operators for lease agreements in respect of land;
•overseeing due diligence for and executing transactions for the sale and purchase, and leasing, of land;
•managing NZL’s property, including land owned by NZL;
•arranging regular valuations and audits of NZL; and
•administering the payment of dividends and distributions in respect of NZL.
NZRLM is remunerated via management fees, transaction fees and performance fees.
20262025
$ '000$ '000
Transactions with NZL
Management fee revenue1,384
1,425
Performance fee revenue387
856
Transaction fee revenue30
452
1,801 2,733
Amount receivable from NZL
140 327
26. Auditors' remuneration
20262025
$ '000$ '000
Fees paid to the auditors
Audit of the consolidated financial statements - BDO Auckland241 155
Fees for other services - RSM Hayes— 3
Direct expenses associated with the audit8 24
Total249 182
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
47
27. Financial risk management
Risk management framework
The Group's activities expose it to a variety of financial risks including credit risk, liquidity risk and market risk.
The Board has overall responsibility for the establishment and oversight of the Group's risk management framework. The Board reviews and agrees policies
for managing each of these risks and monitors compliance with those policies through regular reporting by management.
The Group's principal financial instruments comprise cash and cash equivalents, trade receivables, loan advances, quoted equity investments, trade and
other payables, borrowings and loans held at FVTPL.
The tables below set out the Group’s classification of each class of financial assets and liabilities, and their fair values. The Group's exposure to financial risk
has changed significantly during the year following the disposal of the NZ Farmers Livestock Limited Group on 1 December 2025.
At FVOCI At amortised cost At FVTPLTotal
2026$ '000$ '000$ '000$ '000
Financial assets
Cash and cash equivalents*— 11,784 — 11,784
Trade receivables*— 149 — 149
Loan advance*— 2,500 — 2,500
Investments4,245 — — 4,245
Tax loss offset receivables— 510 — 510
Total financial assets4,245 14,943 — 19,188
Financial liabilities
Trade payables*— 360 — 360
Loans held at FVTPL— — 7,666 7,666
Total financial liabilities— 360 7,666 8,026
At FVOCI At amortised cost At FVTPLTotal
2025$ '000$ '000$ '000$ '000
Financial assets
Cash and cash equivalents*— 9,660 — 9,660
Trade receivables*— 10,216 — 10,216
Finance receivables*— 1,454 — 1,454
Loan advance— 3,000 — 3,000
Investments3,579 — — 3,579
Total financial assets3,579 24,330 — 27,909
Financial liabilities
Trade and other payables*— 10,539 — 10,539
Bank borrowings at amortised cost*— 2,069 — 2,069
Loans held at FVTPL— — 10,496 10,496
Total financial liabilities— 12,608 10,496 23,104
* The carrying value of these financial assets and liabilities approximates their fair value. For items that are short-term in nature or carry interest at floating
rates, carrying value approximates fair value on that basis. The loan advance carries a fixed interest rate of 15%, which approximates a current market rate
for a loan of similar credit risk and maturity; accordingly its carrying value is not materially different from its fair value.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
48
27. Financial risk management (continued)
Credit risk
Credit risk represents the risk that a counterparty will fail to meet its contractual obligations, resulting in financial loss to the Group.
The Group's maximum exposure to credit risk at reporting date is represented by the carrying amount of its financial assets recognised in the Statement of
Financial Position. These comprise cash and cash equivalents, trade receivables, the loan advance and amounts receivable from NZL.
At 30 June 2026, trade receivables totalled $149,000 and primarily comprise amounts due from NZL and other counterparties associated with the Rural Land
Management business. All material receivables were current and none were past due at reporting date.
The ageing profile of receivables at the reporting date is as follows:
Not yet due
1 - 30 days
overdue
31 - 60 days
overdue
>60 days
overdue
Total
$ '000$ '000$ '000$ '000$ '000
2026
Receivables from NZL
140 — — — 140
Tax loss offset receivables
510 — — — 510
Other trade receivables
9 — — — 9
Net receivable
659 — — — 659
2025
Receivables from livestock sales*
2,426 7,138 204 199 9,967
Credit loss allowance (livestock)*
(50) (18) (5) (98) (171)
Receivables from NZL
325 2 — — 327
Other trade receivables
75 18 — — 93
Finance receivables*
1,493 — — 51 1,544
Credit loss allowance (finance)*
— (2) (26) (62) (90)
Other receivables and prepayments
Net receivable
4,269 7,138 173 90 11,670
*The above receivables were disposed of as part of the NZFL group sale. See note 5.
Management considers the credit risk associated with these balances to be low due to the financial position of the counterparties and the absence of
historical defaults. For credit risk relating to cash and cash equivalents refer to note 10 and loan advance to note 12.
Credit risk concentration
The Group has a concentration of credit risk through:
•The receivables from NZL includes transaction, leasing and management fees due in accordance with the management contract. This balance is not
secured as at 30 June 2026.
•the secured loan advance to a South Canterbury dairy farming operation; and
•cash deposits held with banking institutions.
Management actively monitors these exposures and is satisfied the risk of material loss remains low.
Liquidity risk
Liquidity risk represents the Group’s ability to meet its contractual obligations as they fall due. Liquidity risk is reviewed on an ongoing basis and managed to
meet requirements. Cash flow forecasting is performed in the operating entities of the Group and aggregated at Group level. The Group monitors rolling
forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its
undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its
borrowing facilities.
At 30 June 2026, the Group held cash and cash equivalents of $11,784,000 and had no drawn variable rate bank facilities following repayment of the
Heartland facility during the year.
The amounts disclosed in the tables below show the contractual undiscounted cash flows (including interest) due on financial liabilities, so will not always
reconcile to the amount disclosed on the balance sheet. The amounts below also reflect the contractual repricing timing on financial liabilities, if applicable.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
49
27. Financial risk management (continued)
Consolidated Statement of
Financial Position
Contractual
Cashflow< 6 months6 - 12 mths1 - 5 yrs
2026$ '000$ '000$ '000$ '000$ '000
Trade and other payables785 785 119 666 —
Borrowings - MC Redlands Pty Ltd*7,666 11,000 — — 11,000
8,451 11,785 119 666 11,000
2025
Trade and other payables11,249 11,249 11,249 — —
Bank borrowings - Heartland Bank Limited2,069 2,288 415 416 1,456
Borrowings - MC Redlands Pty Ltd10,496 11,087 53 53 10,981
23,814 24,624 11,717 469 12,437
The Group considers available cash resources to be sufficient to meet forecast obligations as they fall due.
*At reporting date, special purpose vehicle Allied FLA limited has maximum contractual payments of $11 million under the MC Redlands loan. Repayment of
this loan is contingent on proceeds from disposal of investment property and the mechanisms in the loan agreement which is described in note 18
Market risk
Market risk is the risk that changes in market prices will affect the Group’s profit or loss, cash flows or the fair value of its financial instruments. The Group’s
exposure to market risk comprises equity price risk and fair value risk associated with financial liabilities measured at fair value through profit or loss.
Following repayment of the Heartland borrowing facility, the Group has no material exposure to floating rate debt and therefore has limited exposure to
cash flow interest rate risk.
Equity price risk
The Group holds 4,376,732 shares in New Zealand Rural Land Company Limited which are classified as financial assets at fair value through other
comprehensive income. The investment had a carrying value of $4,245,000 at 30 June 2026. The shares are listed on the NZX and are subject to equity price
risk as they are shares which are quoted and traded in an active market.
If prices for these equity securities had changed by 7%, which is the decrease in price since 30 June 2026, with all other variables including tax rate being held
constant, the effects on other comprehensive income would have been:
2026
$ '000
Effect on other comprehensive income
(306)
Fair value risk – MC Redlands liability
The Group is exposed to valuation risk through the financial liability arising from the MC Redlands property funding arrangement, which is classified as a
Level 3 financial liability measured at fair value through profit or loss. At 30 June 2026 the liability had a carrying value of $7,666,000. Refer to note 18 for the
associated risks and sensitivity analysis.
Capital management
The Allied Group’s capital includes share capital, accumulated losses and reserves.
The Board manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying
assets. In order to maintain or adjust the capital structure, the Group may issue new shares, sell assets, seek additional debt funding, or adjust the amount of
dividends paid to shareholders.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
50
28. Reconciliation of profit to cash surplus from operating activities
20262025
$ '000$ '000
Profit for the year
2,613 3,841
Tax expenses
1,190 225
Adjustments for items not involving cash flows:
Impairment reversal on receivables
18 58
Fair value loss/(gain) on investment properties
2,455 (932)
Loss on financial liabilities at fair value
(3,331) 928
Loss on sale of assets
13 77
(Profit) on sale of Saleyards
— (96)
Depreciation and amortisation
834 1,219
Movement in investments
(16) 18
Gain on sale of NZFL Group
(2,329) —
Dividend and performance shares received in shares
(668) (796)
Other non-cash items:
Loans held at FVTPL interest accrual
272 —
Performance fee reversal
196 —
Share based payments expense accrual
93 —
Lease movements during the period
5 —
Other - including non cash items
(51) (67)
(2,509) 409
Movement in trade and other receivables
11,077 (979)
Movement in inventories
156 84
Movement in trade, other payables and employee benefits
(12,404) 3,264
Tax paid
(50) (45)
Cash flow from operating activities
73 6,799
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
51
28. Reconciliation of profit to cash surplus from operating activities (continued)
This note provides a reconciliation of the opening and closing balances of liabilities arising from financing activities, including both cash flow and non-cash
changes during the financial year:
Reconciliation of liabilities arising from financing activities
2026
Opening balance
Repayments/
Drawdowns Disposal of NZFL
Non-cash
movementsClosing balance
$ '000$ '000$ '000$ '000$ '000
Lease liabilities2,099 (302) (1,838) 216 175
Borrowings
2,069 (2,051) — (18)
—
Loans held at FVTPL
10,496 — — (2,830)
7,666
Drawdown from other borrowings
— 4,550 (4,550) —
—
Repayment of loan book related borrowings
— (1,728) 1,728 —
—
Non-controlling interests
979 (1,304) 701 (376)
—
Total liabilities from financing15,643 (835) (3,959) (3,008) 7,841
2025
Opening balanceRepayments Disposal of NZFL
Non-cash
movementsClosing balance
$ '000$ '000$ '000$ '000$ '000
Lease liabilities2,235 (854) — 718 2,099
Borrowings
2,709 (640) — —
2,069
Loans held at FVTPL
— — — 10,496
10,496
Non-controlling interests
2,688 (2,679) — 970
979
Total liabilities from financing7,632 (4,173) 12,184 15,643
29. Contingent liabilities and contingent assets
There are no contingent liabilities or assets as at reporting date (2025: nil).
30. Events subsequent to reporting date
There were no material subsequent events after the reporting date to disclose.
Allied Farmers Limited and its subsidiaries
Notes to the consolidated financial statements
For the year ended 30 June 2026
52
INDEPENDENT
AUDITOR’S REPORT
SEC
TION
6
53
BDO Auckland
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF
ALLIED FARMERS LIMITED
Opinion
We have audited the consolidated financial statements of Allied Farmers Limited (“the Company”)
and its subsidiaries (together, “the Group”), which comprise the consolidated statement of
financial position as at 30 June 2026, and the consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year
then ended, and notes to the consolidated financial statements, including material accounting
policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at 30 June 2026, and its consolidated
financial performance and its consolidated cash flows for the year then ended in accordance with
New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) and IFRS
®
Accounting Standards.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand)
(“ISAs (NZ)”). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We
are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no relationship with, or interests in, the Company or
any of its subsidiaries.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
54
BDO Auckland
Revenue recognition and cut off
Key Audit Matter
The Group recognised fee revenue of $1.801 million during the year from continuing operations,
comprising management fee revenue of $1.384 million, performance fee revenue of $0.387
million and transaction fee revenue of $0.030 million earned under management agreements
relating to the management of rural land assets.
Performance fee revenue represents variable consideration under NZ IFRS 15 Revenue from
Contracts with Customers and is recognised only when it is highly probable that a significant
reversal in cumulative revenue recognised will not occur. The judgement is principally in
determining whether the relevant performance conditions have been satisfied, whether the net
asset value growth above the contractual benchmarks is supportable at year end, and whether
any uncertainty remains that could result in a subsequent reversal of revenue.
Management fee revenue also required judgement in applying the contractual fee mechanism,
including the determination of the relevant net asset value base to which the agreed fee rate is
applied, the period over which services are provided, and whether revenue was recognised in the
correct reporting period.
In addition, given revenue is earned under management agreements and calculated by reference
to contractual terms and managed entity values, there is a risk that revenue, including
management fees, performance fees and transaction fees, is not recognised in the appropriate
period around year end.
Refer to Note 4 (Segment Information) of the consolidated financial statements.
How The Matter Was Addressed in Our Audit
Our audit procedures included, among others:
• Gained an understanding of the processes and evaluated the related controls
implemented by the Group over revenue recognition and cut off around the reporting
date.
• Reviewed the management contracts to ensure that the Group’s policy for the point of
recognition is in compliance with the requirements of NZ IFRS 15 Revenue from Contracts
with Customers.
• Performed tests of detail on a sample of rural land management revenue transactions
throughout the period to ensure that revenue was appropriately recognised.
• Reviewed management’s assessment of performance fee revenue, including whether the
recognition criteria under NZ IFRS 15 were met and whether variable consideration was
highly probable of not resulting in a significant reversal.
• Performed revenue cut-off procedures around year end, tracing revenue recognised to
supporting documentation, and ensured that revenue has been recognised in the correct
period.
• For the performance fee revenue, reviewed the relevant contractual terms,
management’s assessment and the calculation of the accrued fee, and considered
whether entitlement to the fee existed at balance date.
• Reviewed the disclosures in the consolidated financial statements, including the revenue
recognition policy, against the requirements of NZ IFRS 15.
55
BDO Auckland
Impairment of Intangible Asset
Key Audit Matter
The Group's intangible assets totalled $8.80 million at 30 June 2026 (2025: $9.36 million), of
which $8.79 million (2025: $9.31 million) relates to the NZL Management Contract with NZRLM to
provide NZL with management investment and administrative services. Following the disposal of
the NZFL Group during the year, the Management Contract represents a substantially larger
proportion of the Group's remaining asset base and continuing operations, increasing the
significance of management's impairment assessment to users of the consolidated financial
statements.
Management assessed the recoverable amount of the Contract using a value in use calculation.
This calculation includes key inputs and assumptions, including asset growth in the managed
portfolio of 2.3% per annum, acquisitions and divestments of 5% per annum, a discount rate of
6.1%, and a remaining amortisation period of 17 years.
Management’s assessment involves significant judgement in forecasting future cash flows,
portfolio growth and discount rates, which are subject to estimation uncertainty and is prone to
potential bias and inconsistent application. Therefore, we considered this to be a key audit
matter.
Refer to Note 14 (Intangible Assets) of the consolidated financial statements.
How The Matter Was Addressed in Our Audit
Our audit procedures included, among others:
• Gained an understanding of management's process and relevant controls for assessing the
recoverable amount of the Contract.
• Obtained management’s value in use calculation, tested the mathematical accuracy of
the model, and challenged the key inputs and assumptions.
• Challenged management’s key assumptions, including growth in the managed asset
portfolio, assumed acquisitions and divestments, forecast cash flows and the discount
rate.
• Engaged internal valuation specialists to assess the valuation methodology and key
assumptions used in the value in use model, including whether the methodology was
consistent with NZ IAS 36 Impairment of Assets.
• Assessed management’s conclusion that the remaining useful life of the Contract remains
appropriate, including consideration of the expected economic horizon of the underlying
managed portfolio.
• Performed sensitivity analysis over key assumptions in the value in use model.
• Reviewed the disclosures in the consolidated financial statements against the
requirements of NZ IAS 36.
56
BDO Auckland
Valuation of investment properties
Key Audit Matter
The Group holds investment properties with a carrying value of $8.0 million at 30 June 2026
(2025: $10.5 million) through its wholly owned subsidiary, Allied FLA Limited. The investment
properties comprise a dairy farm, support block, lifestyle block and industrial site.
The fair value measurement of the investment properties involves significant judgement because
the properties are specialised rural and industrial assets, the valuation methods differ by
property, and key assumptions include capitalisation rates, market evidence, highest and best
use, development potential of the industrial site and adjustments applied to completed
earthworks. The industrial site represents the most judgemental component of the portfolio
because its valuation is based on a market approach that considers the site's potential use as a
dairy factory development, adjusted for the stage of development, market evidence, feasibility,
funding, approvals and timing uncertainties. The investment properties are classified as Level 3
recurring fair value measurements.
Given the significance of the investment properties to the consolidated financial statements, the
complexity of the valuation inputs and the judgements required in assessing the industrial site’s
development potential and highest and best use, we considered this to be a key audit matter.
Refer to Note 16 (Investment Property) of the consolidated financial statements.
How The Matter Was Addressed in Our Audit
Our audit procedures included, among others:
•Assessed the competence, capabilities and objectivity of management's external property
valuation experts.
•Obtained and reviewed the external valuation reports supporting the fair value of the
investment properties.
•Evaluated whether the valuation methodologies adopted were consistent with the
requirements of NZ IFRS 13 Fair Value Measurement and NZ IAS 40 Investment Property.
•Engaged internal valuation specialists to assess the appropriateness of the income
approach methodology and the reasonableness of the capitalisation rates applied to the
dairy farm and support block.
•Engaged an independent external valuation expert to assess the fair value of the lifestyle
block and compared the expert's conclusions to management's valuation.
•For the industrial site, we obtained and evaluated management’s valuation and the
supporting evidence for the adopted market approach, including the valuer’s assessment
of highest and best use, market demand for the consented industrial development, the
probability of the consented development proceeding, comparable market evidence and
adjustments made for the completed earthworks.
•Engaged our own independent valuation expert to assess the fair value of the industrial
site and used their work to challenge management’s valuation conclusion and key
assumptions.
•Considered whether the assumptions underpinning the industrial site valuation were
supportable at 30 June 2026, including whether market participants would attribute
value to the dairy factory development potential and the extent to which uncertainty
around feasibility, funding, approvals and timing should be reflected in the fair value
measurement.
57
BDO Auckland
• Reviewed and challenged key valuation inputs and assumptions, including the highest and
best use of the industrial site, support for its development potential, the market
evidence applied and the adjustment to completed earthworks.
• Performed sensitivity analysis over key valuation assumptions in the investment property
valuation.
• Reviewed the disclosures in the consolidated financial statements against the
requirements of NZ IFRS 13 and NZ IAS 40.
Fair value of financial liability
Key Audit Matter
The Group recognised loans held at fair value through profit or loss of $7.7 million at 30 June
2026 (2025: $10.5 million) relating to the MC Redlands Pty Ltd funding arrangement entered into
by Allied FLA Limited.
The arrangement includes a loan and redeemable preference share profit-sharing feature linked
to future property values. Management has concluded that the loan and redeemable preference
share are a single financial liability designated at fair value through profit or loss. The fair value
measurement is a Level 3 measurement and is based on expected future cash flows from the loan
and profit share component, discounted using market rates.
The valuation involves significant judgements, including the expected growth rate in the
underlying properties, cost of debt, weighted average cost of capital for the profit share
component, the timing and amount of expected future cash flows, and the linkage between the
financial liability and the fair value of the underlying investment properties. Given the material
carrying value of the financial liability, the judgement involved in the classification and fair
value measurement, and the use of unobservable Level 3 inputs, we considered this to be a key
audit matter.
Refer to Note 18 (Loans Held at Fair Value Through Profit or Loss) of the consolidated financial
statements.
How The Matter Was Addressed in Our Audit
Our audit procedures included, among others:
• Obtained and reviewed the loan agreement, subscription agreement and related
transaction documents to understand the contractual terms of the funding arrangement
and profit-sharing feature.
• Assessed management's conclusion that the loan and redeemable preference share form a
single financial liability designated at fair value through profit or loss.
• Obtained management’s fair value model and tested the mathematical accuracy of the
model.
• Assessed whether the key inputs and assumptions were consistent with the contractual
arrangements and the fair value of the underlying investment properties.
• Engaged internal valuation specialists to assess the valuation methodology, market
interest rate, discount rate, weighted average cost of capital and credit risk assumptions
used in the fair value model.
58
BDO Auckland
• Performed sensitivity analysis over key valuation assumptions, including the property
growth rate, cost of debt and weighted average cost of capital.
• Reviewed the disclosures in the consolidated financial statements against the
requirements of NZ IFRS 9 Financial Instruments and NZ IFRS 13 Fair Value Measurement.
Accounting and presentation of the disposal of NZ Farmers Livestock Limited ("NZFL")
Key Audit Matter
The Group completed the disposal of NZFL group on 1 December 2025, resulting in the loss of
control and deconsolidation of the NZFL group. The disposal was a significant transaction during
the year and has been presented as a discontinued operation in the consolidated financial
statements.
The accounting for the transaction required significant judgement, including the determination
of the gain on disposal, the derecognition of the disposal group's assets, liabilities and non-
controlling interests, the measurement of consideration received, and the assessment of the
Group's continuing involvement in the former NZFL loan book. Judgement was required in
determining whether the disposal qualified for presentation as a discontinued operation and in
assessing the related disclosures.
Given the significance of the transaction and the judgement involved in applying NZ IFRS 10
Consolidated Financial Statements, NZ IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations and NZ IFRS 9 Financial Instruments, we considered this matter to be a key audit
matter.
Refer to Note 5 (Discontinued operations) of the consolidated financial statements.
How The Matter Was Addressed in Our Audit
Our audit procedures included, among others:
• Obtained and reviewed the sale and purchase agreement and assessed the key terms
relevant to the disposal accounting.
• Agreed the consideration received to completion statements, settlement documentation
and cash receipts.
• Audited the NZFL group profit or loss for the period from 1 July 2025 to the disposal date
and the disposal-date balance sheet, including significant assets, liabilities and non-
controlling interests, to obtain evidence over the discontinued operations result and the
inputs to the gain on disposal calculation.
• Recalculated the gain on disposal, including derecognition of the disposal group’s net
assets and non-controlling interests, measurement of consideration received and the
impact of continuing involvement in the NZFL loan book.
• Assessed management's accounting treatment of the Group's continuing involvement in
the NZFL loan book under NZ IFRS 9.
• Obtained management's accounting assessment paper and, together with our internal
technical experts, reviewed the accounting treatment of the disposal transaction,
including the loss of control assessment, gain on disposal calculation, continuing
involvement arrangements and discontinued operations presentation.
• Evaluated management's assessment that the disposal qualified for presentation as a
discontinued operation and assessed the related disclosures and comparative
information.
• Reviewed the disclosures in the consolidated financial statements against the
requirements of NZ IFRS 10, NZ IFRS 5 and NZ IFRS 9.
59
BDO Auckland
Other Information
The directors are responsible for the Annual Report, which includes information other than the
consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we
do not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we
are required to communicate the matter to the directors.
Directors’ Responsibilities for the Consolidated Financial Statements
The directors are responsible on behalf of the Group for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS Accounting Standards,
and for such internal control as the directors determine is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of the
Group for assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the financial statements is located at
the External Reporting Board’s website at: https://www.xrb.govt.nz/standards/assurance-
standards/auditors-responsibilities/audit-report-1-1/.
This description forms part of our auditor’s report.
Who we Report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
60
BDO Auckland
or assume responsibility to anyone other than the Company and the Company’s shareholders, as a
body, for our audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Mark
Nicholson.
BDO Auckland
Auckland
New Zealand
28 August 2026
61
COMPANY
DIRECTORY
Directors:
Shelley Ruha
Richard Milsom
Philip Luscombe
Registered Office of the
Company:
Level 4
131 Queen Street
Auckland 1010
Postal Address
of the Company:
Level 4
131 Queen Street
Auckland 1010
Auditors:
BDO Auckland
Level 4,
BDO Centre
4 Graham Street
Auckland 1140
Share Registrar:
MUFG Pension &
Market Services
PO Box 91976
Auckland 1142
Shareholder Enquiries:
MU
FG Pension & Market
Services
Ph: 09 375 5998
Fax: 09 375 5990
Email:
lmsenquiries@linkmarketservices.com
PO Box 91976
Auckland 1142
SEC
TION
7
62
---
Results announcement
Results for announcement to the market
Name of issuer Allied Farmers Limited
Reporting Period 12 months to 30 June 2026
Previous Reporting Period 12 months to 30 June 2025
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$2,282 (25.33%)
Total Revenue $17,690 (40.47%)
Net profit/(loss) from
continuing operations
$1,389 511.89%
Total net profit/(loss) $2,613 (31.97%)
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividends proposed
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
$0.66 $0.51
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to results release and audited financial statements. On 1
December 2025 Allied Farmers sold its 67.7 percent holding of
NZFL to Rural Livestock Limited.
Authority for this announcement
Name of person
authorised
to make this announcement
Stephen Reid
Contact person for this
announcement
Stephen Reid
Contact phone number 021 766636
Contact email address stephen.reid@alliedfarmers.co.nz
Date of release through MAP
28/08/26
(Audited financial statements accompany this announcement.)
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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