UPDATE 1-Australia's McGrath posts interim loss as impairments weigh

By Kitco News / February 14, 2018 / www.kitco.com / Article Link

* Share trade halted ahead of company announcement

* Broker takes heavy impairment charges

* Losses come as Chinese investors lose interest


(Adds details on Co's revenue, trading halt, regulatory changes)

Feb 15 (Reuters) - Australian real estate broker McGrath Ltd posted an interim loss on Thursday on impairment charges on its sales segment assets.

The net loss for the six months to Dec. 31 was A$25.5 million ($20.21 million) versus a profit of A$2.7 million a year ago, the company said in a statement.

Australia's only listed realtor issued a profit warning in November that sent its shares plunging, as higher taxes and other restrictions led to a sharp fall in Chinese investor interest in buying new apartments. New South Wales, Australia's most populous state, announced a doubling in property taxes for foreign buyers in June, a move intended to discourage Chinese investment just as seemingly unstoppable property markets in Sydney and Melbourne begin to show signs of strain. The company said its revenue from ordinary activities dropped to A$51.6 million from A$67.3 million a year ago.

In a separate statement, the company requested a trading halt of its shares pending an announcement on recent media coverage of its founder John McGrath.

It announced a shakeup of its management in January, with John McGrath set to take the role of interim executive chairman. ($1 = 1.2617 Australian dollars)


(Reporting by Ambar Warrick in Bengaluru; Editing by Eric Meijer)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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