Kingfish Lifts Asset Value By 35%

3 May 2007

Kingfish Lifts Asset Value By 35%

“The Kingfish Board is delighted to announce a record annual result for the 2007 financial year, with net profit after tax up 95% to $36.8 million. Net asset value per share, which measures the value of Kingfish’s listed investment companies, continued its impressive upward climb by 35.4% to $2.1520 in the 12 months to 31 March 2007.” said Chairman, Rob Challinor

Net profit after tax rose from $18.8 million to $36.8 million. This result includes $33.8 million of unrealised gains on investments held and $6.3 million of realised gains on investments sold during the year. The majority of the realised gains were from the sale of Waste Management shares in June 2006 after its amalgamation with Transpacific Industries Group.

The Directors have declared a fully imputed dividend of 3.5 cents per share payable to all eligible shareholders on 15 June 2007 (2006: 2.5 cents per share).

Carmel Fisher, Managing Director of Fisher Funds Management Limited, the Manager of Kingfish, said she was delighted to oversee Kingfish’s third consecutive year of outstanding investment performance. “We are very pleased to have achieved such strong returns enabling the net asset value to more than double over the past three years. This is the sort of growth rate we target and expect from our portfolio companies.”

A number of Kingfish’s companies achieved annual earnings growth of more than 20%, resulting in strong share price rises that have contributed to the increase in Kingfish’s net asset value by 122% in the three years to March 2007 to $2.1520.

Ms Fisher says what has been particularly satisfying in the past three years is that the results have reinforced Kingfish’s buy and hold approach to investments. “Our strategy of finding businesses with a proven record and holding them for as long as the investment case remains true has resulted in market-leading investment performance,” she says. “This strategy proved to be rewarding. Only two new holdings were added to the Kingfish portfolio during the year – they just happened to be the right ones!”

During the year meaningful portfolio positions were built in wine producer Delegat’s Group and GPS technology company Rakon. “We believe Rakon is arguably the best company in its chosen field in the world, and is a truly scalable global business. Delegats also has the ability to be a global brand and capitalise on the growing demand for premium New Zealand wines,” Ms Fisher says.

Other major contributors to Kingfish’s performance were Metlifecare (up 93%), Ryman Healthcare (up 58%), and Mainfreight (up 55%) in the twelve months to 31 March 2007.

Looking ahead, Fisher Funds does not anticipate it will need to make significant changes to the Kingfish portfolio. “We have said consistently that we feel very comfortable with the stock selection and composition of the portfolio,” Ms Fisher says.

Although we are not able to predict exchange rates, interest rates and the pace of economic growth with any certainty, we are comfortable that each of our companies and will exhibit competitive strength and implement the appropriate strategies to navigate the changing economic environment in the year ahead.”

ENDS

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