Rangatira Investments Annual Result announcement
Rangatira Investments fund net asset value assessed at $255 million after successfully completing the sale of Hellers
Rangatira Investments today announced its annual result. The net asset value of the fund as at 31 March 2019 has been assessed at $255 million ($14.40 per share). This includes the additional assessed value above book value of the private investments. The Board have maintained the total dividend for the year of 60 cents per share, providing shareholders with an after-tax return of 4.2 per cent per annum on the assessed net asset value.
Chair David Pilkington said, “This has been a busy and important year for Rangatira. We successfully completed the sale of Hellers in January following a competitive process that enabled us to realise cash from a fantastic asset. Hellers generated an excellent return to Rangatira over the past 15 years and its sale marked the conclusion of a great partnership with Todd Heller and Nick Harris. Over those 15 years, Hellers has become a household name in NZ, one of NZ’s most trusted brands and the market leader in the segments it operates in.
“Rangatira now has $75 million in cash to invest in new businesses. We will continue to be prudent in any investment we consider to ensure it meets our risk-reward criteria.”
Chief Executive Mark Dossor said, “While currently opportunities are not plentiful and price expectations are higher than in the past, Rangatira’s key point of difference to other investors is our reputation and flexible long-term holding period. As a long-term investor, with holding periods of over ten years, Rangatira is an attractive investor partner to businesses and owners with a long-term view.”
Rangatira Investments reported a net profit after tax of $6.6m for FY19, down from $11.1m FY18. Operating earnings for the period of $9.1m, compared with $11.3m for the corresponding period last year.
The company says that operating earnings were impacted by the Hellers sale; the FY19 result only includes 10 months of earnings from Hellers. The underlying performance of Bio-Strategy, Rainbow’s End, Mrs Higgins were all slightly down on last year, although this was partially offset by a better than expected performance from Magritek.
The company’s listed portfolio performed well and proved resilient during the decline in markets in late 2018. Rangatira has recently reset and increased its listed investment portfolio from $27m to $51m and has continued to invest post 31 March 2019. Listed assets provide Rangatira with exposure to assets that it cannot invest in through private businesses, such as utilities and international assets.
Post 31 March 2019, Rangatira has lifted its holding in Magritek, the first global provider of desktop Nuclear Magnetic Resonance (NMR) instruments, to close to 25 per cent and also completed an investment in the kiwifruit industry.
Chair David Pilkington said, “The completion of the Hellers sale has put us in a strong financial position and the Board is maintaining the total dividend for the year at 60 cents per share.”A fully imputed interim dividend of 36 cents per share has been declared (last year 36 cents) and will be paid on Monday, 24th June 2019. Rangatira shares will trade ex-dividend Monday 17th June 2019.