Allied Farmers has admitted to shareholders it’s made mistakes in the past year following its acquisition of defunct finance company Hanover’s assets.

Allied directors fronted angry shareholders in Hawera on Wednesday, and came under fire for their performance around Hanover, after the assets were significantly devalued following the purchase.

Allied Managing Director Rob Alloway says if more was known about the state of Hanover’s books before the sale, it would have happened differently.

“On a number of scores, in terms of running a business, you always look back and say, ‘Well, we may have communicated this differently to shareholders and staff, we may have treated the advice and information provided by independent advisors a little differently.'

"There’s always things you would do a little better or smarter if you went back and did it all again."

Rob Alloway was due to leave Allied Farmers at the end of the year.

He has agreed to stay on as managing director for another six months.

"The board asked me to reconsider and if I would stay on a little bit longer.

"I’ve always had a commitment to the company and the shareholders, and I’m happy to stay on for a few more months.”

Auckland lawyer Tim Rainey, who represents the legal interests of nearly 3000 Hanover investors, says Allied’s decision to return to its core rural services business doesn’t fill shareholders with confidence.

“Any time you have a change like that, it undermines the confidence that investors have in the people presenting that information.

"Certainly there is a degree of scepticism among investors who feel aggrieved."

Mr Rainey says investors left the meeting no better off than last year, and facing the prospect of a diluted shareholding.

It’s as if the deal that took place last year didn’t happen, except Hanover investors now find themselves investors in a rural services company that will remain a rural services company."

Allied investors whose shareholdings pre-date the Hanover deal will receive bonus shares next year because of the drop in the finance company’s asset values.

Allied shares were trading at 2.3 cents on Wednesday morning.