Rangatira Investments today announced its annual result for the financial year ending 31 March 2020. Operating earnings and net profit after tax were both down on the corresponding period last year. Operating earnings were $4.3m for the year, down from $9.1m and, compared with a net profit after tax of $6.6m last year, a net loss after tax of $1.3m was incurred this year.
Chief Executive Mark Dossor said, “The Financial Year 2020 result has been characterised by the impact of Covid-19. Before Covid-19, we were seeing steady progress across the portfolio companies, good returns from our listed stocks and better than expected cash returns.”
Despite these challenging times, the company says it is positive about the year ahead and is confident that there will be good opportunities for investment as equity value have fallen.
“This year’s result follows several years of strong performance. While we remain conservative about growth in the near term, Rangatira’s strong balance sheet, conservative gearing and diversified portfolio mean that it is well-positioned to take advantage of emerging opportunities and the economic recovery,” Mark Dossor said.
The Net Asset Value of Rangatira’s total fund has been re-assessed to reflect current market uncertainty resulting in a fall in net assets from $254m to $226m ($14.40 and $12.77 per share respectively). This is due to a reduction in the current values of the company’s private businesses and the dividend payment. Our investments in Property and Listed stocks have all held their value through the year.
Rangatira made three relatively modest investments during the year. The company increased its stake in Fiordland Lobster, Southern Cross Horticulture who are investing in the production of SunGold Kiwifruit, and in Magritek taking its holding from 18 per cent to 25 per cent.
“Looking forward, we believe that these three investments all provide good platforms for growth and that the market and the investment environment will be better suited for Rangatira to invest capital. With over $50m of cash we are in a strong position to invest in new businesses and ventures that meet our risk-reward criteria.
“As a long-term investor, with an investment horizon of over ten years, Rangatira is an attractive investment partner to businesses and owners with a long-term view,” Mark Dossor said.
Rangatira Chairman David Pilkington said “We are pleased to be able to pay a partially imputed final dividend of 30 cents per share (last year 36 cents). This maintains consistent and strong cash returns to our shareholders, over 65% of our shareholders are leading New Zealand Charities.”
The dividend will be paid on 24 June 2020, Rangatira shares will trade ex-dividend on 12 June 2020.
About Rangatira Limited
Rangatira is a Wellington-based investment company with shareholders’ funds of over $225 million. Established in 1937, the Company is 51 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 professionally 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 - www.usx.co.nz.