Sharechat Logo

Rangatira lifts FY guidance, pushes on with plans to boost liquidity

Tuesday 9th April 2013

Text too small?

Rangatira, the Wellington-based investment company, lifted its guidance for full-year earnings growth, reflecting a stronger performance from businesses such as small goods maker Hellers and Auckland Packaging.

Growth in operating earnings in the year ended March 31 probably exceeded its earlier forecast of 10 percent to 20 percent, the company said in a statement. Operating earnings in 2012 fell 21 percent to $7.7 million, reflecting the sale of Dunlop Living and Tecpak Industries.

"Across the board, most of our companies have traded well this year," said chief executive Ian Frame. "The Heller brand is becoming increasingly strong in the marketplace, particularly on the small goods side."

Rangatira shares trade infrequently on the Unlisted platform. The 11.5 million B shares, which are mainly held by charities and have limited voting rights, were last at $7.5, while the 6.2 million A shares were last at $7. That gives the company a combined market value of about $130 million against total assets of about $180 million, based on the estimated asset backing at March 31 of more than $10 a share, it said.

To boost liquidity and attract more investors to the shares, Rangatira is planning a share buyback programme, which is to be voted on at the annual meeting in August.

Shareholders have to sign off on the plan because some members of the family of founder John McKenzie are deemed to hold more than 19.9 percent of the company in aggregate, and can't increase their stake without making a full takeover unless other shareholders approve.

As well as a share buyback, Rangatira plans to begin holding briefings for brokerages in the Wellington region to help lift the company's profile, Frame said.

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar holds gains on improved dairy, bank capital outlook
MARKET CLOSE: NZ shares gain; banks rally on Reserve Bank capital decision
NZ dollar rises; bank capital rules less harsh than expected
RBNZ relaxes capital requirements, allows preference shares, extends phase-in
NZ dollar extends gain amid mixed US data, possible trade progress
MARKET CLOSE: NZ shares dip on eve of major regulatory decisions
NZ dollar sees off global headwinds, holds above 65 US cents
NZ dollar holds above 65 US cents; dairy auction prices mixed
Dairy index falls on weaker butter, milk fat demand
MARKET CLOSE: NZ shares join global decline; US tariff move weighs on exporters

IRG See IRG research reports