Rangatira Investments' operating profit rises by almost a third
Rangatira Investments’ operating profit for the six months ended September rose 29% to $4 million.
The company owns stakes in small and medium-sized businesses, including Hellers smallgoods maker, Tuatara brewery and Rainbow's End theme park.
Net profit was $5.9 million, almost double the previous period's $3.1 million, the company says. However, that includes a $1.9 million gain from the sale of investments in publicly traded companies.
Chairman David Pilkington says its geothermal facility in Rotorua, Polynesian Spa, had benefited from the tourism boom.
"Polynesian Spa, in particular, had a good half-year result, boosted 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," he says.
However, its Rainbow's End theme park in South Auckland 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 numbers."
Operating earnings also benefited from an increased stake in Heller's Butchers. It now holds 62.5% of the business, compared to 50% in the previous reporting period.
Chief executive Phil Veal says 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.