Elders flags $500m FY loss

Group says impairments, de-recognition of tax assets will weigh on results.

Elders (ELD) says it expects to post a full-year loss of more then half a billion dollars when it releases its financial results for the year ended September 30 next week.

In a statement to the Australian Securities Exchange, Elders said a number of impairments, particularly to intangibles and the de-recognition of tax assets, combined with a statutory loss of $301 million for the six months to March 31, will result in a statutory loss for the full year of $510 million.

The company also said it was yet to quantify the severity of the loss in respect to the irregularities uncovered in its International Trading businesses but it does expect to do so before it announces its full-year results.

A draft and interim report is expected to be received from PPB Advisory, which has been engaged by Elders as forensic accountants, later this week.