Hot Topic NBR Focus: GMO
Hot Topic NBR Focus: GMO
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Rangatira first-half operating earnings rise

Operating earnings rose to $3.1 million in the six months ended September 30.

Edwin Mitson
Thu, 03 Dec 2015

Diversified investor Rangatira, first-half operating earnings rose 11% and the company says it is heading for a full-year gain of as much as 30%.

Rangatira has stakes in smallgoods maker Hellers, Tuatara Brewery and the Auckland’s Rainbow's End theme park.

Last month, the Wellington-based company increased its stake in Hellers to 62.5% from 50%. Among recent acquisitions are a 70% holding in Bio-Strategy, a scientific instrument distributor, and additional capital investment in Partners Group, a life, health and trauma insurer.

Operating earnings rose to $3.1 million in the six months ended in September, from $2.8 million a year earlier, although net profit fell 20% to $3.1 million, reflecting a year-earlier gain of $1.1 million from asset sales.

Rangatira will pay an interim dividend of 20c a share, unchanged from a year earlier, on December 14, with a record date of December 4.

Chairman David Pilkington says the company is benefiting from better performance from existing investments as well as its new acquisitions.

"The increase in our operating earnings over last year's first half is due to stronger performances from our key investee companies and includes three months contribution from our new acquisition Bio-Strategy," he says.

"For the full year, we expect operating earnings to be between 20% and 30% higher than last year".

Individual investors own 34% of Rangatira, while the J.R. McKenzie Trust owns 51% and 15% is held by community and charitable organisations. Its shares are listed on the Unlisted platform and are split into class A and class B. Both classes last traded at $9.25.

Rangatira says the asset backing of the shares is unchanged from March 31 at $11.32.

Rangatira was founded in 1937 as the first private investment company in New Zealand. It has about $200 million in assets and investments.


Edwin Mitson
Thu, 03 Dec 2015
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Rangatira first-half operating earnings rise