Kingfish Achieves Record Result
14 July 2006
Kingfish Achieves Record Result
Listed investment company Kingfish has produced a record result after achieving a 12.2 per cent rise in its net asset value to $1.7825 for the three months to June, the company announced today.
Kingfish’s share price last traded at $1.37, up 22 per cent since 31 March 2006 and 37 per cent since the company listed in March 2004. Kingfish warrants last traded at $0.385. Participants in the March 2004 initial public offering who still hold their shares and warrants have therefore enjoyed an 80% return on their initial $1.00 investment including dividends received.
Kingfish director Carmel Fisher said of the fourteen NZX listed stocks in its portfolio, all but one had experienced a rise in its share price in the June quarter. “This result reflects the strong performance and outlook for those companies in the Kingfish portfolio”.
Share price rises in Rakon, Metlifecare, Ryman Healthcare, Mainfreight and Delegat’s during the quarter contributed 70 per cent to the rise in net asset value. The share prices of newly listed Rakon and Delegats’ rose 76 and 39 per cent respectively during the quarter, while retirement village companies Metlifecare and Ryman Healthcare each rose 30 per cent.
During the quarter, Kingfish supported both the Rakon and Delegates initial public offerings. Rakon is a world-leading designer and manufacturer of high-quality crystal components used in both telecommunications and GPS applications. “Rakon’s growth prospects are very attractive as GPS applications including in-car and hand held navigation become more widespread over time,” Ms Fisher said.
In addition, winemaker Delegat’s was demonstrating a strong foothold in the renowned New Zealand’s Sauvignon Blanc market. “Delegat’s Oyster Bay brand is established in many overseas markets where significant sales growth should with increasing grape supplies.”
Proceeds from the Waste Management amalgamation had enabled Kingfish to declare a special dividend of 2.5 cents per share which is payable on 4 August 2006 on all eligible shares held on the record date of 21 July 2006. The special dividend will be eligible to participate in the Dividend Reinvestment Scheme.
Kingfish director Carmel Fisher said she remained comfortable with the outlook for the companies in its portfolio. “Many of the companies within Kingfish have significant offshore operations which will both protect their earnings from the continued slow down in the New Zealand economy, and may enhance profits from a falling New Zealand dollar,” she said. Delegat’s earns around 80 per cent of its revenue from offshore, Michael Hill more than 65 per cent, and Pumpkin Patch approximately 85 per cent. “Our first hand assessment of these companies’ offshore prospects is promising,” she said. “Over time their growth will generate substantial gains to the benefit of Kingfish shareholders.”
Kingfish Limited is a listed investment company investing in small companies that are listed on the NZSX and NZAX, and unlisted small companies. The investment portfolio is managed by Fisher Funds Management Limited, a specialist New Zealand investment manager with a track record of successfully investing in smaller company shares. Kingfish began operating in March 2004 when it received subscriptions for 58.5m shares at $1 per share.
The five largest holdings in the Kingfish portfolio as at 12 July 2006 were approximately:
Ryman Healthcare - 19.9%
Mainfreight - 15.7%
Pumpkin Patch - 11.1%
Freightways - 10.8%