Marlin Global Limited
Results for announcement to the market
Reporting period 12 months to 30 June 2016
Previous reporting period 12 months to 30 June 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 / (loss) from ordinary activities (3,781); N/A, 18,496;
Profit from ordinary activities after tax attributable to security holders
(6,901); N/A, 14,675;
Net profit attributable to security holders (6,901); N/A, 14,675;
Dividend Marlin will pay a partially imputed quarterly dividend of 1.72cps as
part of its distribution policy
Ex-dividend date 14 September 2016
Record date 15 September 2016
Dividend payment date 30 September 2016
Net asset value per share 30 June 2016: $0.83
For immediate release:
22 August 2016
Challenging 12 months for the Marlin Global portfolio
o Net loss $6.9m (2015, profit of $14.7m)
o Adjusted net asset value* per share down 6.7%
o Total shareholder return* -0.3%
o Dividend return 8.6% (7.47cps paid)
After three years of double digit returns, the Marlin Global portfolio was
unable to continue its strong performance over the past 12 months in what has
been a volatile global equity market.
NZX-listed investment company Marlin Global Limited (NZX: MLN) today
announced a net loss for the 12 months to 30 June 2016 of $6.9 million,
following last year''s profit of $14.7 million.
The Marlin portfolio decreased by 6.7% after adjusting for 7.47 cents per
share paid in dividends and other capital management initiatives, while the
Benchmark Index^, also in negative territory, was down 3.0%.
The result includes dividend and interest income of $1.1m, losses on
investments and foreign exchange of $4.8m, less operating expenses (including
management fees) and tax of $3.2m.
Since Marlin''s inception in November 2007, adjusted net asset value (NAV)*,
which reflects the underlying performance of the Marlin portfolio, has
increased 43.6%, behind the Benchmark Index^ which is up 62.5% over the same
period.
Marlin''s total shareholder return (TSR)* was low at -0.3% for the year ended
30 June 2016 but is up 43.6% since inception. TSR was negatively impacted by
Marlin''s combined share and warrant price falling 9.2% during the year.
In accordance with Marlin''s distribution policy (2.0% of average NAV per
quarter), the company paid a total of 7.47 cents per share to shareholders
during the year ended 30 June 2016. In August, the Board declared a dividend
of 1.72 cents per share to be paid to shareholders on 30 September 2016 with
a record date of 15 September 2016.
On 5 August 2016, warrant holders had the right to convert their warrants
into ordinary Marlin shares at an exercise price of $0.61. On the same day,
Marlin shares were trading on market at $0.79. As a result, only 5% of
warrant holders choose to exercise their warrants on the exercise date,
providing an additional $1.1m to invest in the Marlin portfolio. Since the
exercise date, the share price has begun to strengthen and is now trading at
$0.82.
Chairman Alistair Ryan said: "It is disappointing to report a negative result
after three years of strong returns. We have seen a period of economic
uncertainty in global equity markets, particularly in the final month of the
financial year with the surprise Brexit vote."
Marlin''s Manager, Fisher Funds said: "Despite a relatively weak macro
environment and ongoing geopolitical concerns we don''t believe the conditions
are ripe for a sustained equity market correction. We do believe though that
the weak overall earnings environment does present a headwind to sustained
equity performance."
Fisher Funds added: "We aim to have a portfolio of high quality companies
that will deliver sound and sustainable earnings growth, and are pleased with
the portfolio changes underway."
Changes to the portfolio included the addition of Amazon.com, Cerner,
Cognizant, Descartes Group, Ecolab, Mead Johnson, Stericycle and Zoetis,
while Gameloft, Harley Davidson, Horiba, Sirona Dental, UFP Technologies,
Volkswagen, Waison Group and Zodiac were exited. The total number of
investments at 30 June 2016 stood at 32 stocks.
For further information please contact:
Carmel Fisher
Managing Director
Fisher Funds Management Limited
Tel: (09) 484 0342
^Blended index: World Small Cap Gross Index until 30 September 2015 & S&P
Large Mid Cap/S&P Small Cap Index (hedged 50% to NZD) from 1 October 2015
Recent change to Non-GAAP measures:
Due to a regular issue of warrants, the total shareholder return and adjusted
net asset value now take into consideration the impact of the warrants on
issue and when exercised, as well as the dividends paid to shareholders. In
addition, the adjusted net asset value also now takes into account share
buybacks, so all capital allocation decisions are now adjusted for.
*Definitions of Non-GAAP measures:
Adjusted Net Asset Value (Adjusted NAV)
The adjusted NAV per share represents the total assets of Barramundi
(investments and cash) minus any liabilities (expenses and tax), divided by
the number of shares on issue. It adds back dividends paid to shareholders
and adjusts for:
o the impact of shares issued under the dividend reinvestment plan at the
discounted reinvestment price;
o shares bought off the market (share buybacks) at a price different to the
NAV, and;
o warrants exercised at a price different to the NAV at the time exercised.
Adjusted NAV assumes all dividends are reinvested in the company''s dividend
reinvestment plan and excludes imputation credits.
The directors believe this metric to be useful as it reflects the underlying
performance of the investment portfolio adjusted for dividends, share
buybacks and warrants, which are a capital allocation decisions and not a
reflection of the portfolio''s performance.
Total Shareholder Return (TSR)
The TSR combines the share price performance, the warrant price performance
(when warrants are on issue), the net value of converting warrants into
shares, and dividends paid to shareholders.
TSR assumes:
o all dividends paid are reinvested in the company''s dividend reinvestment
plan at the discounted reinvestment price and excludes imputation credits.
o all shareholders that have received warrants (for free), have subsequently
exercised their warrants at the warrant expiry date and bought shares (if
they were in the money).
The directors believe this metric to be useful as it reflects the return of
an investor who reinvests their dividends and, if in the money, exercises
their warrants at warrant maturity date for additional shares. No metric has
been included for investors who choose other investment options.
About Marlin Global
Marlin Global is a listed investment company that invests in growing
companies based outside of New Zealand and Australia. The Marlin portfolio is
managed by Fisher Funds, a specialist investment manager with a track record
of successfully investing in growth company shares. Fisher Funds and its
related entities currently have over $5 billion of funds under management.
The aim of Marlin 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. Marlin listed on the NZX
Main Board on 1 November 2007 and may invest in companies that are listed on
any approved stock exchange (excluding New Zealand or Australia) or unlisted
international companies not incorporated in New Zealand or Australia.
/ends
End CA:00287645 For:MLN Type:FLLYR Time:2016-08-22 16:47:17