Pyne Gould posts first-half loss on foreign exchange
Pyne Gould Corp. [NZX: PGC], the asset management firm which recently relocated to Guernsey, reported a first-half loss on foreign exchange charges and its share of a loss posted by Equity Partners Infrastructure Co No. 1, though expects to post an annual profit.
The Guernsey-based firm had a loss of $6.63 million in the six months ended Dec. 31, compared to a profit of $1.49 million a year earlier, with a $2.61 million foreign exchange charge and accounting losses of $2.28 million from EPIC, which holds a 17.5 percent share of British motorway operator MOTO and manages the Torchlight partnership.
The Torchlight business, which has targeted distressed assets, made a cash profit of $2.19 million in the half, up from $1.65 million.
"PGC continued to execute its stated strategy of divesting non-core assets and focusing on growing its Torchlight business," managing director George Kerry said in a statement.
The company has been selling its New Zealand assets, which it expects to complete this year, to focus on its UK and Australian investments, which dominate the firm's investment portfolio, ahead of a listing on the London Stock Exchange.
At its December annual meeting, chairman Bryan Mogridge told shareholders the company is seeking to deliver compound growth north of 15 percent over the medium to long term, meaning it will deliver "lumpy results" and has a policy of not providing market guidance.
The shares fell 5.5 percent to 43 cents on Friday, and have dropped 10 percent this year.