Rangatira maintains dividend as profit dips on Hellers sale
By Paul McBeth
June 11 (BusinessDesk) - Rangatira Investments maintained its dividend in the face of weaker earnings following the sale of smallgoods maker Hellers.
The Wellington-based investment firm will pay an unchanged dividend of 36 cents per share on June 21. That takes the annual return to 60 cents, or $10.6 million. Rangatira sold its Hellers business in January for an undisclosed sum, which chair David Pilkington said left the firm in a strong enough financial position to maintain the dividend.
Rangatira is sitting on $75 million in cash to invest and valued its assets at $255 million as at March 31.
"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," chief executive Mark Dossor said in a statement.
"As a long-term investor, with holding periods of over 10 years, Rangatira is an attractive investor partner to businesses and owners with a long-term view."
The firm reported a net profit of $6.6 million in the 12 months ended March, down from $11.1 million a year earlier. Operating earnings were $9.1 million, down from $11.3 million. Rangatira restated its earlier figures due to a change in how gains and losses were recorded.
The decline in operating earnings was due to a 10-month contribution from Hellers before it was sold and weaker performances from its stakes in Bio-Strategy, Rainbow’s End, and Mrs Higgins.
Magritek outperformed the year-earlier performance and Rangatira has since lifted its stake to 25 percent from 18 percent. It has also invested in a gold kiwifruit development.
The company's shares trade on the Unlisted exchange. A-class and B-class Rangatira shares both last traded at $12.50. A-class shares carry full voting rights, while B-class shares are restricted to voting only on matters affecting their rights.