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Kingfish delivers another strong result

News Release

November 2006


Kingfish delivers another strong result

Listed investment company Kingfish today announced a strong interim result increasing its net asset value per share, a measure of the value of the listed companies it invests in, by 16 per cent in the six months to 30 September 2006 to $1.8467. Kingfish has increased its net asset value by 91 per cent since the company listed in March 2004.

The company announced an $18.4 million net profit after tax for the six months to 30 September 2006, compared with $3 million in the previous corresponding period. The profit result comprised $13 million in unrealised gains on current investments held and $6 million of realised gains on investments sold. The majority of the gain was from the sale of shares in Waste Management after its amalgamation with Transpacific Industries Group in June 2006.

Participation in this year’s two most successful initial public offerings, wine-maker Delegat’s and technology company Rakon also contributed to Kingfish’s half year result. The largest share price contributions came from Ryman Healthcare (up 34 per cent), Metlifecare (up 17 per cent), Mainfreight (up 40 per cent) and Rakon (up 113 per cent on its issue price).

Kingfish Chairman Rob Challinor noted that the Kingfish portfolio had flourished during a period of relatively flat performance on the New Zealand share market, which was testament to the stock picking skills of the manager, Fisher Funds.

Fisher Funds Managing Director Carmel Fisher says the successful Kingfish half year result reflects the impressive performance of its portfolio companies. “Much of our performance can be attributed to the companies in which we have invested continuing to deliver on their promised growth initiatives. In a difficult market environment, strong share price performance does not happen by chance.” she said.

Ms Fisher says it is very satisfying to be a significant shareholder in companies that deliver positive profit results or strategic announcements. “When those results or announcements are consistent with our earlier communications with the companies, it is even more satisfying,” she says.

As previously announced, Kingfish paid a fully imputed special dividend of 2.5 cents per share from greater than expected dividend receipts over the period, primarily a result of a special dividend from Waste Management.

Ms Fisher says: “Although operating conditions for New Zealand companies are arguably more difficult than this time last year, our portfolio companies are world-class and each has a sustainable competitive advantage which should sustain its profit growth in coming months. With companies as diverse as a courier business (with revenues resilient to economic downturns), an international retailer of kids clothes (that are unique in design and have a ready market as kids grow!) and a producer of a wine variety that world consumers can’t get enough of, we remain confident of the future growth potential of the Kingfish portfolio.”

Kingfish will continue to focus on delivering long-term growth and increasing sustainable dividends to investors. “This will be achieved by consistently applying the investment formula that has proved so successful for Kingfish to date,” Ms Fisher said.

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BACKGROUND

Kingfish Limited is a listed investment company investing in small companies that are listed on the NZSX and NZAX, and unlisted small companies. The investment portfolio is managed by Fisher Funds Management Limited, a specialist New Zealand investment manager with a track record of successfully investing in smaller company shares. Kingfish began operating in March 2004 when it received subscriptions for 58.5m shares at $1 per share.

The five largest holdings in the Kingfish portfolio as at 30 September 2006 were approximately:

Ryman Healthcare – 20%
Mainfreight - 17%
Metlifecare -12%
Pumpkin Patch - 10%
Freightways - 10%

www.kingfishlimited.co.nz


ENDS

© Scoop Media

 
 
 
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