Press Release – Kingfish Limited
Total shareholder return increased 18.1% for the six month period • Discount between share price and NAV narrowed from 16.0% to 8.6% • 4.42 cents per share of dividends paid • Total of 16.9 million warrants exercised over two-year lifeFor immediate release:
29 November 2012
Kingfish delivers another strong performance
• Total shareholder return increased 18.1% for the six month period
• Discount between share price and NAV narrowed from 16.0% to 8.6%
• 4.42 cents per share of dividends paid
• Total of 16.9 million warrants exercised over two-year life
NZX-listed investment company Kingfish Limited (NZX: KFL) today announced a net operating profit for the six month period ended 30 September 2012 of $11.5 million.
In the six months to 30 September 2012, Kingfish’s adjusted net asset value (NAV)* increased by 7.9% despite being negatively impacted by the dilutionary effect of the warrants exercised in the period at 95c each. 14.0 million warrants were converted into ordinary shares during the six months, and a total of 16.9 million have been exercised over the two-year life of the warrants.
Excluding the dilutionary effect of the warrants, Kingfish’s adjusted NAV* increased by 10.4% for the six months, ahead of the NZX50 Gross Index which rose 9.2% over the same period. Since inception (2004), Kingfish’s adjusted NAV* is up 74.4%, significantly ahead of the NZX50 Gross Index which is up 47.9%.
The share price traded between $0.93 and $1.06 during the period, closing at $1.05 on 30 September 2012. Since then, the share price has continued to strengthen, closing at $1.10 on 28 November 2012. Total shareholder return increased 18.1% in the six months, and is up 69.1% since inception.
In accordance with Kingfish’s dividend policy (2% of average NAV per quarter), the company paid 4.42 cents per share in dividends during the six months. On 21 November 2012 the Board declared a dividend of 2.29 cents per share to be paid to shareholders on 21 December 2012.
The discount between Kingfish’s share price and its NAV at 30 September 2012 was 8.6%, which has narrowed considerably over the six months from 16.0% at the start of the period. Kingfish Chairman, Alistair Ryan commented: “We are encouraged to see a strong total shareholder return for the period which was the result of a robust portfolio performance.”
Kingfish Manager, Fisher Funds, said: “The New Zealand share market has had a period of strong performance. Due to the slow-moving economy, this performance has been driven more by an increase in equity prices than by any uplift in expected earnings growth.”
During the period, Kingfish reduced its holding in Metlifecare, Acurity Health (formerly Wakefield Health) and Pumpkin Patch while increasing its holding in Trade Me, Freightways and Summerset. Cash as at the end of September was high ($21.2m) due to the exercise of warrants ($11.6m) in early September.
The fundamentals of the Kingfish portfolio are positive relative to the broader market. According to the consensus of analysts’ forecasts, the earnings of Kingfish’s investments are expected to grow by 18% in the coming year with shares trading around 14.8 times earnings.
Mr Ryan said: “It is pleasing to note that the positive performance of the Kingfish portfolio has continued during the first half of this financial year.”
*Total Shareholder Return and adjusted NAV assume all dividends are reinvested, but exclude imputation credits
Kingfish Limited is a listed investment company that invests in New Zealand companies. The investment portfolio of Kingfish is managed by Fisher Funds Management Limited, a specialist fund manager with a track record of successful investing. Kingfish aims to offer investors competitive returns and access to a diversified portfolio of investments through a single, tax efficient investment vehicle. Kingfish may invest in companies listed on the NZX, NZAX and unlisted companies. The company listed on the New Zealand Exchange in March 2004. /ends