Rangatira Investments fund net asset value assessed at $255 million after successfully completing the sale of Hellers
Rangatira Investments today announced its annual result. The net asset value of the fund as at 31 March 2019 has been assessed at $255 million ($14.40 per share). This includes the additional assessed value above book value of the private investments. The Board have maintained the total dividend for the year of 60 cents per share, providing shareholders with an after-tax return of 4.2 per cent per annum on the assessed net asset value.
Chair David Pilkington said, “This has been a busy and important year for Rangatira. We successfully completed the sale of Hellers in January following a competitive process that enabled us to realise cash from a fantastic asset. Hellers generated an excellent return to Rangatira over the past 15 years and its sale marked the conclusion of a great partnership with Todd Heller and Nick Harris. Over those 15 years, Hellers has become a household name in NZ, one of NZ’s most trusted brands and the market leader in the segments it operates in.
Rangatira now has $75 million in cash to invest in new businesses. We will continue to be prudent in any investment we consider to ensure it meets our risk-reward criteria.”
Chief Executive Mark Dossor said, “While currently opportunities are not plentiful and price expectations are higher than in the past, Rangatira’s key point of difference to other investors is our reputation and flexible long-term holding period. As a long-term investor, with holding periods of over ten years, Rangatira is an attractive investor partner to businesses and owners with a long-term view.”
Rangatira Investments reported a net profit after tax of $6.6m for FY19, down from $11.1m FY18. Operating earnings for the period of $9.1m, compared with $11.3m for the corresponding period last year.
The company says that operating earnings were impacted by the Hellers sale; the FY19 result only includes 10 months of earnings from Hellers. The underlying performance of Bio-Strategy, Rainbow’s End, Mrs Higgins were all slightly down on last year, although this was partially offset by a better than expected performance from Magritek.
The company’s listed portfolio performed well and proved resilient during the decline in markets in late 2018. Rangatira has recently reset and increased its listed investment portfolio from $27m to $51m and has continued to invest post 31 March 2019. Listed assets provide Rangatira with exposure to assets that it cannot invest in through private businesses, such as utilities and international assets.
Post 31 March 2019, Rangatira has lifted its holding in Magritek, the first global provider of desktop Nuclear Magnetic Resonance (NMR) instruments, to close to 25 per cent and also completed an investment in the kiwifruit industry.
Chair David Pilkington said, “The completion of the Hellers sale has put us in a strong financial position and the Board is maintaining the total dividend for the year at 60 cents per share.”
A fully imputed interim dividend of 36 cents per share has been declared (last year 36 cents) and will be paid on Monday, 24th June 2019. Rangatira shares will trade ex-dividend Monday 17th June 2019.
About Rangatira Limited
Rangatira is a Wellington-based investment company with shareholders’ funds of over $250 million. Established in 1937, the Company is 51 per cent owned by the JR McKenzie Trust with other community and charitable organisations owning another 15 per cent of the shares. The balance of the shares is owned by private investors. Rangatira’s mission is to increase both the capital value of its shares and the dividends paid to its shareholders by investing creatively and competitively.
Rangatira has built a portfolio of local and international investments across a wide range of sectors. The Company has pursued a policy of investment in small to medium-sized unlisted New Zealand companies, complemented by holdings in a range of publicly listed New Zealand and international companies. All investments have been made taking a long-term position in companies that are well founded and well managed with good growth potential.
Rangatira is strictly commercial in its investment approach and benchmarks its performance against the wider investment community.
Rangatira will continue to explore investment opportunities across a range of business sectors. We aim to add value to our unlisted investments by actively contributing at management and board level, recognising the need to combine high standards of governance with sound management and a clear focus on growth and profitability.
Rangatira’s shares are listed and traded on the Unlisted market (www.usx.co.nz).