Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Investment Gains Deliver Strong Full Year Result

Investment Gains Deliver Strong Full Year Result For Rangatira

Wellington investment company Rangatira today announced a full year profit after tax of $39.4 million, compared with $8.5 million last year, following gains on the sale of investments of $32.1 million.

The $32.1 million contribution resulted from Rangatira selling its 50% holding in Contract Resources, its direct holding in Xero Limited, and its investment in Greenfield. Rangatira still retains an indirect holding in Xero through Valar Ventures.

Directors have assessed the asset backing of Rangatira’s shares to be $11.20 at 31 March 2014, compared to $10.63 last year.

A final fully imputed dividend of 26¢ has been declared making the total dividend for the year 46¢ (last year 42¢). The dividend will be paid on 30 June 2014 and the share register will close for dividend purposes on 20 June 2014.

Rangatira’s chairman David Pilkington said, “The total shareholder return of 9.5% is further endorsement of Rangatira’s long term investment strategy. The company’s average after tax return over the past ten years has been 10.9%, well ahead of most investment funds and the NZSX50 Index.”

New Investments
During the year Rangatira acquired a 12% stake in Magritek. Magritek is an advanced technology company founded by Sir Paul Callaghan that has become a world leading provider of compact, portable MRI and NMR systems. Rangatira also acquired a 35% holding in Wellington based Tuatara, one of New Zealand’s largest independent craft brewers. Rangatira has invested in two further technology companies including IkeGPS and Mesynthes. Rangatira has also invested in JAFCO, a US technology fund.

A number of Rangatira Group companies have being enhanced by strategic investments. These include Hellers’ acquisition of Goodman Fielder meats, Rainbows End’s new Stratosfear ride and Tuatara expanding its brewing capacity to meet strong customer demand.

Further investments sought
Rangatira currently has about $50 million of funds available for investment as opportunities become available.

Rangatira’s chief executive Ian Frame said, “We are actively looking to invest in well-managed New Zealand companies with strong growth potential that need additional capital to take them to the next stage.”

Rangatira has a longer investment timeframe than many private equity funds and prefers to be a cornerstone investor, co-investing with business owners and management. In some cases, it will do this alongside other like-minded investment companies and institutions.

“Rangatira’s investment strategy of ‘investing in business for growth’ has produced good and sustained returns over many years for its shareholders. This can be attributed to a diversified portfolio, conservative gearing and the active involvement of our directors and management in the governance of the companies in which we invest.” Ian Frame said.

David Pilkington said, “Rangatira has had a solid start to the new year, which is pleasing given the seasonal nature of the performance of many of our unlisted investments. Looking ahead, the company has a strong balance sheet and is well positioned to take advantage of market opportunities as they arise.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news