Whakatane based lines business Horizon Energy Distribution Limited ("Horizon
Energy") advises the market that its 31 March 2013 year-end forecast after
tax profit has reduced to around $3.4 million from its previously announced
forecast of $4.3 million.
Horizon Energy Chairman, Mr Rob Tait says "the reduction is due to additional
transmission costs; provision made for a Commerce Commission required price
reduction; forecast operating losses from the wholly owned subsidiary
Aquaheat New Zealand Limited ("Aquaheat"); and accounting for the full
acquisition costs relating to the purchase of Aquaheat." Under current
accounting standards, the costs associated with an acquisition must be
expensed in the year they are incurred and not capitalised as part of the
asset purchase cost.
This revised forecast does not include the financial impact of loss of money
owing to Aquaheat from the receivership of Mainzeal Property and Construction
Limited. This amount cannot be quantified at this time, however further
advice of the likely financial impact will be given to the market once
additional information is available to Aquaheat.
Further, any mark to market changes in the value of the Company''s interest
rate swap portfolio from 1 February to 31 March 2013 will have an impact on
these forecast results.
This expected year-end profit of around $3.4 million is significantly down
from the previous year''s result of $6.4 million.
For further information please call:
Rob Tait
Chairman
Horizon Energy Distribution Limited
07 5711566
021 812577
Ajay Anand
Chief Executive Officer
Horizon Energy Distribution Limited
07 3062900
End CA:00232786 For:HED Type:FORECAST Time:2013-02-11 08:36:19