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MMH - Marsden Maritime Holdings Announces Results for FY23

Friday 25th August 2023

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Marsden Maritime Holdings Announces Result for FY23


Key financials:


• Business Park and Marina Operations revenue $11.3m, up 29% from $8.7m last year

• Net profit after tax before valuation movements $8.2m down from $9.1m last year

• Investment property valuation downward movement of $0.3m partly reversing the previous

year’s significant upwards movement of $3.9m.

• Earnings from joint venture interest in Northport $8.1m down 3.5% from $8.4m last year

• Northport volumes

o Bulk 2.6m t down from 2.9m t last year

o Logs 2.0m t down from 2.3m t last year

o Container volumes were 16,809 TEU down from 19,142 TEU last year


Marsden Maritime Holdings Ltd (NZX: MMH ) has announced its annual result for the year ended 30 June 2023.


Chief Executive Rosie Mercer said, “While we’re delighted to report record revenue, as signalled in

the trading update issued in July 2023, MMH’s reported after-tax profit was impacted by higher

interest costs and the effects of Cyclone Gabrielle reducing log and container volumes through our

Northport joint venture. The 29% growth in the Business Park and Marina Operations revenue

stream went someway to offsetting the 9% reduction in net profit after tax before Investment

Property revaluations and fair value movements which measures our overall operational



Financial performance


The Company’s net profit after tax (excluding revaluation of investment property and fair value

movements) of $8.2m, which was down from last year’s $9.1m but in line with the guidance



Revenue from the company’s Business Park and Marina Operations has continued to grow, totalling

$11.3m, up 29% from $8.7m last year. Underlying earnings* from Business Park and Marina

Operations related activity increased by 7% to $1.6m (from $1.5m in 2022).


Lease revenue saw a 32% uplift to $4.8m, from $3.7m in the previous year. This improvement was

driven by the completion of commercial and industrial developments, including the Nutrinza bulk

storage facility, and strong demand resulting in high occupancy rates for these new assets.


Marina revenue (including Boatyard and goods sold) was $6.1m, up 26% from $4.8m. The Marina

continues to receive positive feedback in relation to the quality of the hardstand and the services



NPAT after revaluation of investment property and fair value movements of ($0.2m) was $7.9m

(2022: $13.1m- including a valuation movement of $3.8m).


Northport and Cyclone Gabrielle


The Northland economy was particularly hard hit by the impacts of Cyclone Gabrielle and this

resulted in a reduction of over 12% in both log volumes and container numbers through Northport.

As a result, earnings from MMH’s joint venture interest in Northport Ltd totalled $8.1m, which is

down 3.5% from last year’s $8.4m.




MMH’s dividend policy uses a guideline of 70% of net profit after tax before asset revaluations and

fair value movements being distributed as dividends. In line with this policy, the company will pay a

fully imputed final dividend of 7.5 cents per share on 29 September 2023. This will bring the total

dividend distribution for the year to 13.5 cents per share, down 2.5 cents from last year.




Chief Executive Rosie Mercer said, “Our focus this year has been on getting the foundations right.

We are confident we have the right team in place capable of delivering on our strategy and

positioning MMH to take advantage of the significant growth opportunities ahead.


“We’ve also done a deep dive to understand the strengths of our assets and identified some areas to

address. Our focus for the next 12 months is continuing to grow revenue while concurrently

focussing on sound asset maintenance and management, which will enable us to get into a more

sustainable expenditure pattern, improve our level of service to customers and generate higher

shareholder returns over the long term.”


Chairman Murray Jagger said, “The 2023 financial year has seen Marsden Maritime Holdings focus

on getting the business on the right path for a truly sustainable future. The Board and Management

are pleased with the overall performance of the business under challenging conditions and we

believe MMH is well positioned to leverage the opportunities coming our way.


As we emerge from Covid and the cyclone recovery, the economic outlook right across New Zealand

shows more than ever the importance of businesses like ours to drive growth, support the

community and help the region get back on track. A key part of this is the leadership role we must

play in influencing the development and delivery of strategic road and rail infrastructure assets for

the region. It is pleasing to see the design phase of the Marsden Rail Spur commencing and there

are cross party support for critical roading infrastructure connections for the region with Auckland

and New Zealand.


We are confident our strong commercial focus will enable us to deliver long term prosperity for our

stakeholders and the region.”



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