Wellington, Sept 10 NZPA - Allied Farmers Ltd today reported a $77.587 million annual loss after writing off $21.395 million of goodwill for the collapse of its finance company Allied Nationwide Finance on August 20.

The release of the company's annual accounts was delayed due to the impact of the receivership, which occurred after balance date. The loss is unaudited. The company said the audit has not yet been concluded and it was likely that the audit opinion would be modified.

The accounts were prepared on the basis the company is a going concern on the assumption that funding initiatives currently being arranged are completed in the near term.

Allied Farmers also had impairment losses of $20.203m relating to assets it purchased from Hanover Finance and United Finance. It has increased the impairments relating to these assets several times.

The loss in the year to June 30 compared to a loss of $34.198m last year.

Revenue fell 3 percent to $106.7m. No dividend was declared.

The company estimates a nil recovery from its investment in Allied Nationwide Finance.

Allied Farmers' chairman has left and managing director Rob Alloway is leaving later this year.

He said today that the fair value assessment of the assets acquired from Hanover Finance and United Finance was very disappointing given the level of independent expert overview of these values while Hanover was in moratorium and prior to acquisition.

A $175.52 million provisional fair value assessment reported in interim accounts has fallen to $109.975 million.

"In a number of cases, the combined effect of reduced liquidity in the financial sector and reduced demand for property has severely diminished the security value which backs these assets," he said.

Many assets had been valued based on assumptions that were subsequently found to be unrealistic.

But the recovery process on loans and properties has been encouraging with $9.447 million recovered in the six months to June 30.

The company said earlier today that the settlement of the sale of its Five Mile property in Queenstown occurred earlier than expected.

The proceeds have been used to reduce term debt to Westpac from $14.2m to $5.4m.