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

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:

NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news