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Rangatira Investments operating profit rises by almost a third, Polynesian Spa benefits from tourism boom

Tuesday 29th November 2016

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Rangatira Investments, which owns stakes in small and medium-size businesses including the Hellers smallgoods maker, the Tuatara brewery and the Rainbow's End theme park, says operating profit for the six months ended Sept. 30 rose 29 percent to $4 million.

Net profit was $5.9 million, almost double the previous period's $3.1 million, the Wellington-based company said in a statement. However, that includes a $1.9 million gain from the sale of investments in publicly traded companies.

Chairman David Pilkington said its geothermal facility in Rotorua, Polynesian Spa had benefited from the tourism boom. 

"Polynesian Spa, in particular, had a good half-year result, driven by increased sales and operating efficiencies, and is well positioned to make the most of the continued forecast growth in tourism from key Asian markets."

However, its Rainbow's End theme park in South Auckland had suffered from bad weather in the first half of the year, although the situation is expected to improve over the summer. 

"Rainbow's End is investing in new facilities (new entrance gate, and upcoming attraction Driver's Town) to improve visitor experience and increase visitor numbers" Pilkington added. 

Operating earnings also benefited from an increased stake in Heller's Butchers. It now holds 62.5 percent of the business, compared to 50 percent in the previous reporting period. 

Chief executive Phil Veal said the company was continuing to look for investment opportunities. 

"Over the period, we looked at a broad range of opportunities, looking for more medium-sized companies that, with investment and support, have the potential to grow into the next iconic New Zealand business."

The directors say the assets behind the business remain worth $12.43 a share. A-class and B-class Rangatira shares both recently traded at $9.80. A-class shares carry full voting rights, while B-class shares are restricted to voting only on matters affecting their rights.

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