Rangatira reports jump in profit
Rangatira, the investment company in Wellington today announced its interim result for the six months to 30 September 2013. The company bought a cornerstone stake in beer company Tuatara Brewing this year. It reported a tenfold jump in first-half profit after selling its stake in engineering service firm Contract Resources and its direct holding in accounting software developer Xero.
Profit after tax for the period was $30.8 million, compared with $3.0 million for the corresponding period the previous year, following gains on the realisation of investments of $29.7 million.
The $29.7 million contribution resulted from Rangatira's selling of its 50% holding in Contract Resources and its direct holding in Xero Limited. Rangatira still retains an indirect holding in Xero equivalent to 290,000 shares. David Pilkington, Chairman of the company said operating earnings are expected to recover in the second half, due to the seasonal nature of several of Rangatira's investments, though they are likely be 20 percent to 30 percent lower than the $9.8 million reported in 2013, due to the Contract Resources exit.
Rangatira's shares are listed on the unlisted platform, and will trade ex-dividend from Monday, 9 December 2013.
Directors have assessed the asset backing of Rangatira's shares to be $10.55 at 30 September 2013, compared to recent trades at $9.00.
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