NZ Automotive Investments Limited (NZAI) (NZX:NZA) has announced that due to external economic factors and further bond buying by the Bank of Japan, the New Zealand Dollar has strengthened against the Japanese Yen, affecting the Company’s foreign exchange hedge position and resulting in a mark to market loss of $0.7m.
This has resulted in a downward revision of the Company’s underlying net profit after tax for the year ended 31 March 2022 to a range of $1.7m to $1.8m, from the guidance of $2.3m - $2.7m announced in January 2022.
Actual net profit after tax, including a one-off gain from the rearrangement of leases of $0.9m, is expected to be in the range of $2.6m to $2.7m, down from the guidance of $3.2m to $3.6m previously announced.
The Company remains in compliance with all banking covenants and is in a solid financial position.
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