AUSTRALIA'S ALLCO FINANCE PREDICTS BIG LOSS IN FY 08.(Financial report)

SYDNEY, May 1 Asia Pulse - Troubled Allco Finance Group Ltd (ASX:AFG) says it expects to post a significant loss in fiscal 2008, possibly more than $A1.5 billion ($US1.4 billion).

Allco said that write-downs and impairments, together with anticipated restructuring costs and the potential sale of assets at less than carrying values, "may result in a loss in excess of $1.5 billion" for the year ending June 30, 2008.

The company said it had noted in its interim report that the assets of the group included $1,301 million in goodwill and million in intangible management rights arising from acquisitions since July 1, 2006.

That report also had noted, Allco said, that while it was difficult to quantify at that point, it was likely that these goodwill and intangible management rights balances had suffered material impairment.

"Whilst the Board is continuing to assess the appropriate carrying values of these items, it can advise that the write-down of goodwill and impairment of the management rights will give rise to a significant loss," Allco said today.

"These write-downs and impairments, together with anticipated restructuring costs and the potential sale of assets at less than carrying values, may result in a loss in excess of $1.5 billion for the company for the year ending 30 June 2008."

In an update to ...