Allied Farmers back in black

Allied Farmers has reported a profit of $1.2 million after tax for the year to June 30 as it continues to shake off the dust from the Hanover Finance debacle.

The farming services company last year posted a loss of $4.4m, driven mainly by a $3.7m loss at its asset management services division, which is recovering Allied's former Hanover and United Finance assets.

This year's profit was driven by a $800,000 one-off gain on a settlement understood to be with Palmerston North-based fresh-food company Speirs Group, and by improved performance of its livestock division.

Allied's asset management division also made a small profit of $200,000 for the year on the disposal of assets. The value of assets still to be recovered is under $100,000, the company said.

Allied bought loans and property valued at $396m from Hanover and United Finance in December 2009.

The finance companies' debenture holders swapped their securities for shares in Allied.

Allied said the focus for the coming year would be to continue to grow the livestock business.