Pyne Gould Corporation Limited ("PGC") has received an unqualified audit
opinion for its annual financial statements to 30 June 2015.
The financial results for the 2015 fiscal year saw Net Tangible Assets (NTA)
of GBP55.2 million (down from GBP71.1 million last year) or NZD128.4 million
(NZD138.6 million last year). Over the year NTA per share was down in GBP
terms from 33.5 pence per share to 26.6 pence per share (in NZD terms from
66.6 cents per share to 62 cents per share).
PGC''s NTA is now up 44% in NZD terms since 30 June 2012. Since that time,
NTA has grown from (in NZD) 43 cents per share to 62 cents per share.
The NTA impact to June 30 2015 was non cash and predominately due to,
firstly, the impact of foreign exchange movements arising from a weak New
Zealand dollar and strong British pound sterling (GBP) and, secondly, the
impact of consolidating Torchlight Fund LP ("TFLP") into PGC for part of the
year.
Torchlight Consolidation
The Group has an investment in TFLP which with effect from 30 September 2014
has been accounted for as a subsidiary. The investment is held through the
Company''s subsidiary Torchlight Group Limited. Whilst PGC has previously
announced that TFLP would be treated as a subsidiary for the 2016 financial
year, the Company entered into conditional agreements on that date which gave
rise to future potential voting rights in TFLP.
The company has historically treated TFLP as an associate, however, it has
since been determined that the hypothetical ability to gain control of TFLP
arising from the future potential voting rights resulted (under IFRS10) in
the Company gaining control of TFLP on 30 September 2014.
Outlook
The Board of PGC is confident that the 10 year plan is on track. We expect
successful execution of the plan to be reflected in gains from TFLP as its
investments mature towards potential value.
TFLP has already exited its position in Local World at a multiple of initial
investment in less than three years. TFLP''s largest remaining holding is 100%
of land bank investor and developer RCL - which is set to be a significant
beneficiary of land rezoning in Queenstown. The financial gains from this
rezoning will be reflected in RCL as it unlocks the value by developing and
selling residential land sites over time.
This style of value investing requires patience that is not generally the
focus of other listed companies. We have, however, been consistent in the
explanation of this so that shareholders and other investors will not be
misled into believing there may be early value and liquidity opportunities.
PGC''s Financial Position is well placed to follow this path with a focused
implementation strategy.
Litigation Update
As the Financial Statements note, TFLP''s General Partner is robustly
defending an attempt to prematurely wind up TFLP. As this matter is before
the Court we do not intend to comment until it has concluded.
New Director
The Board is pleased to announce the appointment of Paul Dudley as a new
independent director. Paul is based in London and was co-founder of HD
Capital Partners Limited, an FCA regulated corporate broking and advisory
business to growth companies and management teams. HD Capital Partners is a
Member Firm of the London Stock Exchange.
Paul is also a Chartered Accountant and his appointment adds further depth
and strength to the Board and we look forward to his future contributions.
Annual General Meeting
The Board is reviewing its stated intention to list PGC on the London Stock
exchange in due course and will provide a further update at this year''s
annual shareholders meeting (AGM). The time and place for the AGM are yet to
be set but is expected to be held during July.
A copy of the PGC annual financial statements to 30 June 2015 is attached to
this announcement and will be available on PGC''s website.
End CA:00282911 For:PGC Type:ANNREP Time:2016-05-24 16:40:33