Rangatira Year End Result to 31 March 2012
6 June 2012
Wellington investment company Rangatira achieved a total shareholder return for the year to March 2012 of 0.2% (last year 18.5%).
Operating Earnings were 21% lower at $7.7m as profits from recently sold investments Dunlop Living and Tecpak Industries were replaced with interest on funds held for reinvestment. Operating Earnings from continuing private equity investments were 10% higher than the previous year.
Gains from asset realisations were $1.4m (last year $4.3m), and together with other non-operating items of -$0.3m resulted in Net Profit After Tax of $8.8m (last year $12.9m).
Asset backing per share at 31 March 2012 was assessed at $8.77 compared with $9.15 last year.
A final fully imputed dividend of 21¢ has been declared making the total dividend for the year 39¢ (last year 40¢). The dividend will be paid on 25 June 2012 and the share register will close for dividend purposes on 15 June 2012.
Commenting on the results, Chairman Murray Gough said the modest gain of 0.2% reflected a loss of earnings from investments that had been sold and a significant decline in the Australian sharemarket. Rangatira’s result compared with a loss in NZ$ terms of -12.6% for the Australian share market, and a rise of 2% in the New Zealand market.
Rangatira’s strategy of diversification and largely private equity holdings continues to provide a sound foundation as the Global Recession grinds into its fifth year, Mr Gough said. Since 31 March 2007 Rangatira has achieved a positive return of 6.8% pa compared with a fall in the NZX 50 index of -3.1% pa.
Over the last 12 months Rangatira has invested in two new venture capital funds (Movac Fund 3 and Valar Ventures), as well as Partners Group (a New Zealand life insurance company), and Xero (an accounting software company) as the proceeds of recent business sales are gradually reinvested. These investments have committed $9.3m, and Rangatira has funds available for further opportunities.
Directors currently anticipate that Rangatira’s Operating Earnings and total shareholder return will be maintained and could improve a little in the coming year. However, the weak and unstable global outlook means there is considerably more uncertainty than usual in achieving that outcome.