Image for Gunns’ 2011 Financial Statements

After the market closes, it’s a Friday, here’s Gunns’ 2011 Financial Statements:

HERE: 120 pages of it ... analysis please!

Market Wrap, HERE: The worst performing stock was Gunns, dropping 16.67 per cent to close at $0.15. Shares in Goodman Fielder and Transpacific Industries Group also fell today.

What KPMG says

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Examiner: Gunns needs to pay $593m debt Timber giant posts financial position

BY MATT MALONEY
02 Oct, 2011 12:00 AM

GUNNS will have to either pay off or re-borrow $593 million in loans and financial arrangements before the next financial year.

The timber company on Friday night posted its latest financial statements on the Australian Securities Exchange website, detailing full year results announced in August.

Gunns confirmed a $355.5 million loss for 2010-11.

The statements also showed that:

•Underlying earnings before interest and tax fell 19 per cent.

•Revenue was $620.7 million, down 12 per cent on last year.

•Net operating cash inflow was $37 million, down from $62 million in 2010.

•Forest products revenue was $268 million, down from $307 million in 2010.

•The exit from Tasmanian native forests had, to date, cost Gunns $88.4 million, of which $23 million was federally- compensated

•Woodchip earnings rose 12 per cent.

Launceston financial analyst Tony Gray said what was interesting in the report was the company’s forecast sale of 2.9 million tonnes of plantation woodchips in the 2012 financial year, up from the previously predicted 2.2-tonne figure.

He said the report showed Gunns had $952 million in assets available for sale but $593 million in loans to pay off or refinance by June.

Mr Gray said part of the asset balance was $213 million in capital works on the company’s Tamar Valley pulp mill, which would not be an asset if the project failed.

So far, more than $200 million has been spent on the pulp mill.

Mr Gray said that the report indicated Gunns wanted to sell off the rest of its loan book, valued at $139 million - of which $56 million had already been sold.

“They are still in a precarious financial position in that they need to secure an asset sale and maintain the confidence of the banks to refinance their core debt,” he said.

“If they sell their loan book, that will get them $90-odd million at best, and that plus the Green Triangle sale due next month, and the state government compensation all helps.

Read the full article HERE