APN warns

APN News & Media warned it is likely to cut the intangible value of its New Zealand publishing assets and that a non-cash impairment charge in respect of those intangible assets will be included in the company’s half-year results.

The company described the adjustment as a non-cash impairment charge, which means it’s an accounting write-down reducing the recorded value of the intangible assets rather than a cash payment. The charge will be reflected in the half-year financial results.

APN stated that net profit for the half year is expected to be $3 million less than last year.

No. APN said the quantum of the non-cash impairment charge is yet to be finalised and will be included in the company’s half-year results.

Yes. In response to an ASX query about a share price fall (reported as from 60? to 51? in the last five days), company secretary Yvette Lamont provided the statement about the likely impairment and expected lower net profit.

Full details, including the final quantum of the impairment charge and the half-year financial impact, are expected to be disclosed in APN’s upcoming half-year results.

The announcement could influence investor sentiment and share price in the short term because it signals an impending accounting write-down and a $3 million decline in half-year net profit versus last year; exact financial impacts will be clearer once the half-year results are released.

The statement was provided by APN’s company secretary, Yvette Lamont, in response to an ASX query regarding the company’s share price movement.