Rangatira 1H earnings rise 11%, sees up to 30% for FY

Rangatira first-half operating earnings rise 11%, sees up to 30% full-year gain

By Edwin Mitson

Dec. 2 (BusinessDesk) - Rangatira, the diversified investor with stakes in smallgoods maker Hellers Butcher, Tuatara Brewery and the Rainbow's End theme park, posted an 11 percent gain in first-half operating earnings and said it is heading for a full-year gain of as much as 30 percent.

Last month, the Wellington-based company increased its stake in Hellers to 62.5 percent from 50 percent. Among recent acquisitions are a 70 percent holding in Bio-Strategy, a scientific instrument distributor, and 8 percent of Partners Group, a life, health and trauma insurer.

Operating earnings rose to $3.1 million in the six months ended Sept. 30, from $2.8 million a year earlier, although net profit fell 20 percent to $3.1 million, reflecting a year-earlier gain of $1.1 million from asset sales.

Rangatira will pay an interim dividend of 20 cents a share, unchanged from a year earlier, on Dec. 14, with a record date of Dec. 6.

Chairman David Pilkington said the company is benefiting from better performance from existing investments as well as its new acquisitions.

"The increase in our operating earnings over last year's first half is due to stronger performances from our key investee companies and includes three months contribution from our new acquisition Bio-Strategy," he said. "For the full year, we expect operating earnings to be 20 percent and 30 percent higher than last year".

Individual investors own 34 percent of Rangatira, while the J.R. McKenzie Trust owns 51% and 15% is held by community and charitable organisations. Its shares are listed on the Unlisted platform and are split into Class A and Class B. Class A shares last traded at $9.25 on Dec 2. Class B shares last traded at $9.25 on Nov 24.

Rangatira says the asset backing of the shares is unchanged from March 31 at $11.32.

Rangatira was founded in 1937 as the first private investment company in New Zealand. It has about $200 million in assets and investments.

(BusinessDesk)

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