Allied Farmers managing director Rob Alloway has announced his immediate resignation from the company’s board.

Since late 2009, when Allied bought the distressed assets and loans of the Hanover Finance group, the value of the company has dropped more than two thirds.

Allied’s latest share price is sitting at just one cent, indicating the disastrous turn of events since the takeover, which was overseen by Mr Alloway.

The Allied Farmers’ board released a statement acknowledging Mr Alloway’s contribution through what they describe as “a challenging time” for the company.

Business analyst Brian Gaynor says while Hanover and Allied shareholders are still in the dark, Mr Alloway should come out of the situation relatively unscathed.

“He didn’t have a lot of experience, and it looked like a good deal at the time, but we all know it turned out to be an incredibly bad deal.

“This happens in business, people make mistakes. It doesn’t necessarily mean he’s a crook or anything, he’s not.

“I think it’s a lack of experience, a lack of a strong board of directors around him, it’s just a pity there was such a big price for everyone to pay.”

Rob Alloway is expected to stay on as Allied’s CEO until June.