Troubled rural services firm Allied Farmers says its future is secure, despite its auditor sending a warning about the firm's future viability.
Auditor PWC declined to give an opinion on the Hawera-based company's financial accounts in Allied Farmers annual report.
PWC says it doesn't have enough evidence to support the assumption Allied will generate enough cash from property sales, reach agreement with some of its creditors, retain the support of its secured lender and find new funding.
Allied says it is disappointed by PWC's stance, but it has the support of its major lender, the property market has picked up, and it expects further sales at Jacks Point subdivision in Queenstown in the next few months.
The auditor's job is to examine the accuracy of a company's books to reassure investors, and Radio New Zealand reports that for PWC to decline to give an opinion about Allied Farmer's future as a going concern - based on the company's financial accounts serves as a warning.
Allied says the auditors unsuccessfully waited for the outcome of a loan application the rural services company had made, before forming an opinion.
The company is now trying to raise another loan.
Allied Farmers noted the auditor had given it qualified opinion in the past couple of years.
The company notes it has the support of its major lender, the property market has picked up and it expects further sales at Jacks Point in Queenstown in the next few months.
Meanwhile, Allied Farmers is seeking an extension until November - when it expects to sell some assets - of its deadline to repay $500,000.
It says if the extension is not granted, the company will default under its secured loan facility.
Allied Farmers' full year loss widened from a previously announced $19.9 million to $14.1 million, much of that related to further impairment of assets originally held by failed finance company Hanover.
The price of Allied Farmers shares fell 0.4 cents to 2.5 cents on Monday.
