ACT commercial property slump leads to goodwill write-off
Canberra's weakening commercial property market could lead to a $436,000 goodwill write-off for Australian Ethical.
One of its property holdings in Bruce, ACT is currently undergoing independent revaluing, which the company expects will lead to the impairment charge.
The property underwent refurbishment throughout 2007 to achieve a 6-star rating under the Green Building Council Green Star program.
Australian Ethical has advised shareholders the property impairment will reduce its Net Profit After Tax (NPAT) to approximately $1.18 million for the year ending 30 June 2013.
Estimated end of financial year (EOFY) results still reflect a comparatively good year for Australian Ethical due to stronger market values and lower costs, it said. NPAT was $402,000 to 30 June 2012 and $487,000 for the half year to 31 December 2012.
Australian Ethical advised that its estimated underlying profit after tax (UPAT) for the EOFY would be approximately $1.46 million.
The profit expectation is based on unaudited management accounts to the end of May 2013 and assumed consistent market and business conditions, it said.
Australian Ethical advised shareholders to expect further information regarding the issue in late August 2013.
Recommended for you
ETF investors would be wise to consider global or European exposure for their equity ETF allocations, according to AXA IM, with US government action expected to hit both its equity and bond performance.
A specialist ETF provider is seeking to become “the new Betashares” with its active ETFs, thanks to its use of algorithms to achieve outperformance.
Platinum Asset Management has entered into binding terms for a merger with L1 Capital with the firm to be renamed upon completion
Prime Value Asset Management has launched a retail fund investing in microcap companies, a new version of its existing wholesale offering.
