Allied Farmers directors have fronted their shareholders for the first time since it was revealed the company alerted the Serious Fraud Office (SFO) about inappropriate conduct at Hanover Finance.

Allied acquired Hanover’s troubled loanbook a year ago in a debt-for-equity swap deal, and has since discovered what it says are a number of irregularities in the finance company’s business.

Allied Farmers Managing Director Rob Alloway says questions were raised soon after the purchase.

“While we were pulling together valuations and going through detailed loan files once they were provided, and interviewed borrowers prior to our half year accounts, we noticed some anomalies.

"We then reported them to the Securities Commission and the SFO."

Mr Alloway says the SFO investigation is good news for Allied investors, as it will bring all the details out in the open.

"I think it’s good news for investors, they deserve to have these things investigated appropriately.

"Now it’s time to let the Securities Commission and the Serious Fraud Office investigate it, do their interviews and hopefully get an outcome out of that.”