Pure Foods Tasmania Ltd (ASX:PFT) Responds to ASX Financial Query
Auditor’s Unmodified Opinion
Pure Foods Tasmania Limited (ASX:PFT) confirmed that its auditor issued an unmodified opinion on the reissued full-year report for the year ended 30 June 2024. Despite a material uncertainty regarding the company’s ability to continue as a going concern, the auditor found the documentation adequate for an unmodified opinion.
Loan Extensions with CBA
PFT has executed loan extension agreements with the Commonwealth Bank of Australia (CBA), including a Market Rate Loan of $1.5 million and a Better Business Loan of $1.6 million, both maturing on 30 June 2026. Additionally, the company restructured equipment finance loans totaling approximately $697,000, extending repayments over an additional two-year period.
Debt Repayment Plans
The company has addressed outstanding debts, including a short-term secured loan from Amal Security Services. PFT has agreed to repay the remaining $50,000 in five weekly instalments starting 14 February 2025, with no additional interest or fees.
Financial Condition and Future Outlook
The directors believe PFT’s financial condition is adequate for continued listing on the ASX. The company has implemented a turnaround plan focusing on cost reductions, cessation of unprofitable product lines, and improving sales strategies. PFT anticipates a positive cash balance by December 2025 and improved operational performance in the upcoming fiscal year.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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