An amazing loss

Amazing Loans yesterday reported a loss of $116.8 million for the 2007/08 financial year, after writing down all goodwill to zero as well as writing down investments in non-core business and increasing bad-debt provisions. Write downs amounted to $111.4 million. The company earned revenue of $6.7 million. Last month the company closed 18 of its 48 branches. Yesterday it announced that it had written off $739,000 for impairment of property, plant and equipment associated with the branch closures. The company reported a net cash outflow of $10.9 million from operations. The company said in a statement that its decision to write down goodwill to zero was prompted by the deterioration in global credit markets. The group has been running an arrears rate of around 30 per cent on its $30 million loan book. It said yesterday it had adopted a more conservative lending policy.

Source: The Sheet