ATH posts profit, loss for group

July 2, 2013 | Filed under: Business | Posted by: newsroom
By RACHNA LAL

The impairment of plant and equipment worth around $70 million by the ATH Group has not reflected well in the group’s financials for the year ended March 31, 2013.

The ATH group’s financials have been released by the South Pacific Stock Exchange.

The group’s net loss after income tax attributable to the members of the company for the financial year was $15.905 million after providing for income tax benefit of $6.768 million.

This is opposed to the group’s net profit after tax of $18.362 million in the 2012 financial year after providing for income tax expense of $12.683 million. But the financial result for the holding company was not as bad.

The net profit after income tax for the holding company for the financial year ended March 31, 2013 was $16.547 million after providing for an income tax expense of $527,000. The net profit after income tax for 2012 financial year was $23.357 million after providing for income tax expenses of $1.571 million, $6.81 million more than this year. Meanwhile, dividends of $18.995 million were declared during the year ended March 31, 2013 whereby for 2012 period it was $12.665 million. 

Impairment reason 
ATH acting general manager, Ivan Fong, had earlier highlighted the reason for the impairment. Where cash and profits generated from particular assets no longer support the value attributed to them on the books, then companies must make adjustments to the values,” he said. “Essentially within the group operating companies, where new technologies are invested in and brought online, these may have greater functionality and efficiencies that supersede older technologies. “So while the physical life of the equipment may be able to continue, economically it may not make sense. “For instance, operations cost of old equipment may be higher than just buying new equipment etc.”