Rangatira lifts annual underlying earnings 15%, seeks new investments

Wednesday 10th June 2015

Rangatira lifted annual underlying earnings 15 percent, helped by an improved second half, and the Wellington based investment group said it is on the prowl for new acquisitions.

Operating earnings rose to $9.2 million in the 12 months ended March 31, from $8 million a year earlier, and raised its total dividend to 47 cents per share, from 46 cents in 2014, it said in a statement. Net profit sank 65 percent to $13.7 million, having benefited from a $32.1 million gain a year earlier when it sold its 85 percent stake in Contract Resources to Hellaby Holdings.

Rangatira is looking for further investments, saying it prefers middle market businesses with strong growth potential and prefers to invest as a cornerstone shareholder. Last year, chairman David Pilkington told shareholders the firm was reviewing its portfolio.

"We made the second half gains as a result of a number of initiatives we put in place to deliver for shareholders over the long term," Pilkington said today. "These included making changes to some of our private businesses to improve their operating performance, the appointment of Phil Veal as our new chief executive, and a strategic focus on new investment opportunities in order to put our cash to work.”

The company said the asset backing of its shares rose to $11.32 at March 31, from $10.76 at Sept. 30, and $11.20 at the end of its 2014 financial year.

Rangatira has two classes of shares that trade on the Unlisted platform, with 67 percent held as class ‘A’ shares and 33 percent in class ‘B’ shares to differentiate between charitable and non-charitable shareholders. The class A shares last traded at $9.50 and the class B shares at $9.30.

BusinessDesk.co.nz

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