Rangatira InvestmentsRangatira Investments reports Total Shareholder Return of 21.2% for the year
Rangatira is pleased to report a Total Shareholder Return of 21.2% for the full year. This figure includes both dividend distribution and
Rangatira declared a final fully imputed dividend of 36 cents, making the total dividend for the year 60 cents an increase of 11% over last year. The dividend will be paid on 18th June 2018 and the share register will close for dividend purposes on 8th June 2017.
Rangatira’s Chair David Pilkington says the good return was driven by higher returns across a number of investments.
Profit After Tax
Rangatira today announced a full year profit after tax of $17.1 million. This result compared with last years restated $20.2 million - last year’s profit was restated to include the one-off $3.9 million gain on the acquisition of VWR’s laboratory supply operations by Bio-Strategy.
|
|
12 months to March 2018 |
12 months to March 2017 Restated |
12 months to March 2017 Annual Report |
|
Operating earnings |
11.4 |
11.7 |
11.7 |
|
Gains from |
7.1 |
8.6 |
8.6 |
|
Impairment loss on investments |
(0.1) |
(1.7) |
(1.7) |
|
Transaction costs and one-off items |
(1.2) |
(2.3) |
(2.3) |
|
Gain on |
- |
3.9 |
- |
|
Profit after tax |
17.1 |
20.2 |
16.3 |
Operating earnings were $11.4 million, slightly down on last year’s $11.7 million.
The realised gains on investment were due to rebalancing the listed investment portfolio and the sale by Movac of its investment in PowerByProxi.
Investments
David Pilkington said Rangatira’s investments had generally delivered solid results.
APC performed well during the year as it expanded its product range and secured new customers. Polynesian Spa has a good year helped by the growth in international visitor numbers.
Hellers had a year of two halves, the wet winter weather adversely affected the first-half result, but an improved second-half performance was pleasing coming off the back of good management, ongoing focus in new product development and strong market positioning as a brand and category leader. Hellers is also focusing on its growth opportunities – building its exports to Australia, turkey sales under the Santa Rosa brand and soups under the Hellers brand.
Cameron Partners has been appointed to do a strategic review of
Rainbow’s End was affected by the wet weather in Auckland at key times which resulted in lower than expected visitor numbers.
Bio-Strategy has now integrated the VWR’s laboratory supply operations in Australia and New Zealand which it acquired in March 2017. The transaction effectively doubled the size of the company and the full benefits of the integration will be seen in the coming year’s results.
We are looking for profitable mid-market businesses.
Over the year we looked at a broad range of opportunities, to try and identify firms with the potential to grow into the next iconic New Zealand brand or business. Our ideal opportunities are businesses with $10-100 million in annual revenue, and $2 million or greater in operating earnings.
In December, Rangatira purchased a 50% shareholding in
Pilkington says Rangatira retains a strong balance sheet and significant allocation to cash.
“We are ready to take advantage of new opportunities, particularly leveraging our long track record of co-investing with owners of successful businesses”.
Leadership Change
As previously announced Mark Dossor will join Rangatira Investments as Chief Executive in July 2018.
Our shareholders
Rangatira Investments’ majority shareholder is the J.R. McKenzie Trust (51%), with other community and charitable organisations holding a 15% share. The annual dividend payments enable non-profit shareholders to continue to deliver meaningful social impact.
ENDS
For further information, please contact:
David Pilkington | Chair | Rangatira Investments
Chris Bradshaw | Chief Financial Officer | Rangatira Investments | 04 472 0251
About Rangatira Limited
Rangatira is a Wellington-based investment company with shareholders’ funds of over $380m million. Established in 1937, the Company is 43.6 per cent owned by the JR McKenzie Trust with other community and charitable organisations owning another 15 per cent of the shares. The balance of the shares is owned by private investors. Rangatira’s mission is to increase both the capital value of its shares and the dividends paid to its shareholders by investing creatively and competitively.
Rangatira has built a portfolio of local and international investments across a wide range of sectors. The Company has pursued a policy of investment in small to medium-sized unlisted New Zealand companies, complemented by holdings in a range of publicly listed New Zealand and international companies. All investments have been made taking a long-term position in companies that are well founded and well managed with good growth potential.
Rangatira is strictly commercial in its investment approach and benchmarks its performance against the wider investment community.
Rangatira will continue to explore investment opportunities across a range of business sectors. We aim to add value to our unlisted investments by actively contributing at management and board level, recognising the need to combine high standards of governance with sound management and a clear focus on growth and profitability.
Rangatira’s shares are listed and traded on the Unlisted market (usx.co.nz).