Strong Result and Increased Dividend for Rangatira
Wellington investment company Rangatira achieved a total shareholder return for the year to March 2013 of 25.7% (last year 0.2%).
Operating Earnings increased 27% to $9.8m (last year $7.7m), largely reflecting improved returns from Rangatira’s investments in Hellers and Auckland Packaging.
One-off costs associated with new investments and the sale of Rangatira’s 50% holding in Contract Resources were -$1.1m, and together with other non-operating items of -$0.2m resulted in Net Profit After Tax of $8.5m (last year $8.8m).
Asset backing per share at 31 March 2013 was assessed at $10.63 compared with $8.77 last year.
A final fully imputed dividend of 24¢ has been declared making the total dividend for the year 42¢ (last year 39¢). The dividend will be paid on 17 July 2013 and the share register will close for dividend purposes on 11 July.
Rangatira’s chairman Murray Gough said, “The total return of 25.7% reflected a better economic climate, but was also an endorsement of Rangatira’s long term investment strategy. The company’s average after tax return over the past ten years has been 11.1%, well ahead of most investment funds and the NZSX50 Index.”
During the year Rangatira made a successful takeover bid for NZSX listed NZ Experience Ltd (owner of Rainbow’s End Theme Park Ltd), as well as acquiring an interest in Konnect NET, a software company providing services to the insurance industry, and increasing its investment in life insurer Partners Group. The sale of Rangatira's interest in Contract Resources was completed in April, and acquisition of a 35% interest in Tuatara Brewery was announced last month. Most of the proceeds from the Contract Resources sale remain to be reinvested and Rangatira is actively considering further new investments.
Continued sound performance is expected from Rangatira's investments in the coming year. However, Operating Earnings will be affected by the loss of the contribution from Contract Resources. At this stage Directors expect Operating Earnings to be lower than last year by around 10% if the proceeds of the Contract Resources sale are not reinvested. The result could be positively impacted if new income earning investments are made during the year.
Rangatira is a diversified investment company with assessed net assets of $188m. Most of Rangatira‘s funds are invested in significant holdings in private equity companies. Rangatira’s management and Directors are actively involved in governance and strategic development in these companies.
Rangatira was established in 1937 by JR (later Sir John) McKenzie. The majority of its shares are held by the J R McKenzie Trust and other charities, with the balance held by nearly 200 individual shareholders. Rangatira endeavours to provide a strong dividend flow to support the work of its charity shareholders, while at the same time maintaining and growing its capital base.
Rangatira’s shares are listed and traded on the unlisted market.
11:35AM Tuesday, 09 July, 2013