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

 


Pyne Gould FY profit more than halves as asset sales end

Pyne Gould FY profit more than halves as asset sales end, mulls restarting dividend

By Paul McBeth

Aug. 29 (BusinessDesk) - Pyne Gould Corp, the Guernsey-based asset management firm controlled by George Kerr, more than halved its annual profit after completing its asset sale programme and is eyeing a return to paying dividends.

Net profit fell to $20.1 million, or 9.5 cents per share, in the 12 months ended June 30 from $45.2 million, or 20.5 cents, a year earlier, the company said in a statement. That was in line with last week's guidance, and included a $22.5 million gain on the sale of its financial services units in the latest year. It reported an operating loss of $142,000 from operating income of $8.1 million, compared to a profit of $20.3 million on revenue of $42.5 million in 2013.

Managing director Kerr said Pyne Gould is considering restoring a policy of regular dividends within the next year, with the firm "well ahead of its restructuring objectives and is highly confident in both the financial strength and strategic director of the company." It will provide an update in the annual report, which will be released by the end of September.

That's almost three years after Kerr said the firm was no longer a high-dividend stock and needed owners with a long-term view and the ability to inject more capital in his pitch to take over the company after its exit from Marac Finance. At the time, Kerr said "PGC is now a company more likely to re-invest its earnings in its assets with a patient seven years and beyond investment horizon."

Last year, chairman Bryan Mogridge told shareholders the company is seeking to deliver compound growth north of 15 percent over the medium to long term, meaning it will deliver “lumpy results” and has a policy of not providing market guidance.

Pyne Gould lifted net tangible assets 16 percent to 74 cents in the year.

The firm is reviewing its timetable for a London listing and will make an announcement when it publishes the annual report.

Pyne Gould increased its stake in Torchlight Fund LP to $59 million and $33 million of co-investments, and held assets of $159.8 million as at June 30, compared to $151.8 million a year earlier.

Torchlight, which has targeted distressed assets, contributed $5.8 million before $2.7 million of foreign exchange accounting adjustments. The Torchlight fund acquired almost 100 percent of the assets of residential land investor Residential Communities in the year, and is a cornerstone investor in ASX-listed Lantern Hotel Group. It also holds an 11 percent stake in UK newspaper group Local World.

Pyne Gould has a 27 percent stake in Equity Partners Infrastructure Co No 1, which owns 17 percent of UK motorway service owner and operator Moto.

The shares were unchanged at 45 cents, and have slipped 6.3 percent this year, lagging a 7.2 percent increase in the NZX All Index over the same period.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news