Kingfish Limited
Results for announcement to the market
Reporting period 12 months to 31 March 2016
Previous reporting period 12 months to 31 March 2015
The financial statements attached to this report have been audited by
PricewaterhouseCoopers and are not subject to a qualification. A copy of the
auditor''s report applicable to the financial statements is attached to this
announcement.
Reporting period NZ$000; up/(down)% Previous reporting period NZ$000
Total net income from ordinary activities 27,433; 80%, 15,232
Profit from ordinary activities after tax attributable to security holders
22,544; 89%, 11,932
Net profit attributable to security holders 22,544; 89%, 11,932
Dividend Kingfish will pay a partially imputed quarterly dividend of 2.69cps
as part of its distribution policy
Ex-dividend date 8 June 2016
Record date 9 June 2016
Dividend payment date 24 June 2016
Net asset value per share 31 March 2016: $1.37
For immediate release:
23 May 2016
Strong New Zealand share market buoys Kingfish result
o Net profit $22.5m
o Total shareholder return* +3.3%
o Adjusted net asset value* per share +12.9%
o 10.6cps paid in dividends
NZX-listed investment company Kingfish Limited (NZX: KFL) today announced a
net profit for the 12 months to 31 March 2016 of $22.5 million. The New
Zealand share market continues to perform strongly, with the S&P/NZX50G Index
up 15.7% over the same period.
The result builds on last year''s net profit of $11.9 million and includes
gains on investments of $21.3m, dividend and interest income of $6.1m less
operating expenses and tax of $4.9m.
For the year ended 31 March 2016, adjusted net asset value (NAV)* per share
increased 12.9% yet lagged the S&P/NZX50G Index. Total Shareholder Return
(TSR)* was lower this year at 3.3%, mainly due to a decline in share price
from $1.37 to $1.31 over the 12 months. Since year end, the share price has
recovered back to $1.37 (as at 20 May 2016).
Over the last five years, adjusted NAV* has increased 88.1%, lagging the
S&P/NZX50G Index (up 96.3%). However, over the same period, Kingfish
shareholders have achieved total returns in excess of 110%, through regular
dividends, warrant issues and an increase in share price.
Kingfish''s Manager, Fisher Funds, was paid a performance fee of $1,214,160
plus GST during the period as the Kingfish portfolio achieved a return in
excess of both the performance fee hurdle - the Bank Bill Index rate plus 7%
- and the High Water Mark (the highest net asset value at the end of the
previous financial year in which a performance fee was paid).
In accordance with Kingfish''s quarterly distribution policy (2% of average
NAV per quarter), the company paid a total of 10.6 cents per share to
shareholders during the year ended 31 March 2016. On 23 May 2016, the Board
declared a dividend of 2.69 cents per share to be paid on 24 June 2016 with a
record date of 9 June 2016.
Following the successful warrant exercise in November 2015, with 24.2m
warrants out of a possible 30.5m (79%) being converted to ordinary shares,
the Board announced on 19 April 2016 a new tranche of warrants. The exercise
price of $1.32 will be adjusted down for dividends declared between 9 May
2016 (record date) and 5 May 2017 (exercise date). The final exercise price
will be announced in April 2017. Warrants are quoted on the NZX Main Board as
KFLWD and may be bought or sold independently of Kingfish shares.
Kingfish Chairman Alistair Ryan said: "The Board is pleased to see the
Kingfish portfolio continue to benefit from the strong performance of
Kingfish''s holdings. Overall, the strength of the portfolio gives the
directors confidence that the portfolio will continue to grow and yield
healthy returns for shareholders over the medium to long term."
Portfolio Manager Murray Brown said: "The 2016 financial year was the
seventh successive year of positive NAV returns (adjusted for dividends and
warrants), and the current financial year has started on a positive note."
There was one new addition to the Kingfish portfolio during the year - Vista
Group International - and two exits - Opus International and Sky Network TV.
The total number of investments stands at 19 stocks.
Mr Brown added: "IPO activity has slowed, but we are still looking to add
further quality companies to the portfolio over time. Notwithstanding this,
we are happy with our current portfolio of hand picked quality companies and
believe that that it will continue to perform well in the medium to long
term."
For further information please contact:
Carmel Fisher
Managing Director
Fisher Funds Management Limited
Tel: (09) 484 0342
Recent change to Non-GAAP measures:
Due to a regular issue of warrants, the adjusted net asset value and total
shareholder return now take into consideration the impact of the warrants on
issue and when exercised, as well as the dividends paid to shareholders.
*Definitions of Non-GAAP measures:
Adjusted Net Asset Value (Adjusted NAV)
The adjusted NAV per share represents the total assets of Kingfish
(investments and cash) minus any liabilities (expenses and tax), divided by
the number of shares on issue. Adjusted NAV adds back dividends paid to
shareholders (but excludes imputation credits) and adjusts for the impact of
any warrants that were exercised at a price that was different to the NAV at
the time they were exercised.
The directors believe adjusted NAV to be useful as it reflects the underlying
performance of the investment portfolio adjusted for dividends and warrants
exercised.
Total Shareholder Return (TSR)
The TSR combines the share price performance, the warrant price performance
(when warrants are on issue), the value in converting warrants into shares,
and dividends paid to shareholders (but excludes imputation credits).
The directors believe TSR to be useful as it mirrors the return of an
investor who reinvests their dividends and exercises their warrants.
About Kingfish
Kingfish is a listed investment company that invests in growing New Zealand
companies. The Kingfish portfolio is managed by Fisher Funds, a specialist
investment manager with a track record of successfully investing in growth
company shares. The aim of Kingfish is to offer investors competitive returns
through capital growth and dividends, and access to a diversified portfolio
of investments through a single tax-efficient investment vehicle. Kingfish
listed on the NZX Main Board on 31 March 2004 and may invest in companies
that are listed on the NZX Main Board, NZX Alternative Market or unlisted
companies. /ends
End CA:00282842 For:KFL Type:FLLYR Time:2016-05-23 15:38:17