ACT commercial property slump leads to goodwill write-off
Canberra's weakening commercial property market could lead to a $436,000 goodwill write-off for Australian Ethical.
One of its property holdings in Bruce, ACT is currently undergoing independent revaluing, which the company expects will lead to the impairment charge.
The property underwent refurbishment throughout 2007 to achieve a 6-star rating under the Green Building Council Green Star program.
Australian Ethical has advised shareholders the property impairment will reduce its Net Profit After Tax (NPAT) to approximately $1.18 million for the year ending 30 June 2013.
Estimated end of financial year (EOFY) results still reflect a comparatively good year for Australian Ethical due to stronger market values and lower costs, it said. NPAT was $402,000 to 30 June 2012 and $487,000 for the half year to 31 December 2012.
Australian Ethical advised that its estimated underlying profit after tax (UPAT) for the EOFY would be approximately $1.46 million.
The profit expectation is based on unaudited management accounts to the end of May 2013 and assumed consistent market and business conditions, it said.
Australian Ethical advised shareholders to expect further information regarding the issue in late August 2013.
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