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Announcement

FLLYR: PGC: PGC Preliminary Full Year Results period ending 30 June 16

30 Aug 2016 09:53NZX
29 August 2016

PGC Preliminary Full Year Results

Managing Director''s Report

Pyne Gould Corporation ("PGC") recorded Total Comprehensive Income for the
year to 30 June 2016 of GBP8.78 million. (This compares with a Total
Comprehensive Loss of GBP22.22 million for the year to 30 June 2015.)

The result was dominated by non-cash movements in foreign currency reserves.
In the year to 30 June 2016, PGC recorded an GBP8.93 million unrealised gain
from the foreign exchange translation of foreign associates and subsidiaries
(compared with a GBP15.427 million unrealised loss from foreign exchange
translations for the year to 30 June 2015).

At an operating level, PGC recorded a small Net Loss after Tax of GBP0.007
million for the year to 30 June 2016 (compared to a Net Loss after Tax of
GBP6.789 million in the prior year).

At 30 June 2016, PGC held Net Current Assets of GBP38.3 million (up from
GBP30.6 million last year). This is made up of current assets of GBP43.8
million (GBP61.4 million last year), with GBP5.5 million current liabilities
(down from GBP30.8 million last year). PGC held long-term assets of GBP109.6
million (up from GBP99.991m) with GBP43.6 million long-term liabilities (up
from GBP35.7 million).

After allowing for non-controlling interests, PGC recorded a lift in Net
Tangible Assets (NTA) per share from 26.84 pence (26.61 pence in the prior
year).

Commentary

PGC remains focused on patiently executing on its long-term strategy of
exiting non-core assets and building a long term business from distressed
assets.

The exit of non-core assets is largely complete. The material residual
receivable arose from the exit from Perpetual Trust Limited (PTL). This
receivable has been independently valued at NZ$20.88 million.

The core strategy of commitment to the growth of the Torchlight Fund LP
(TFLP) is also expected to deliver long-term value from its principal three
investments of Local World (now exited), ASX-listed Lantern Hotel Group
("LTN") and RCL.

We have discussed previously the exit of Local World in late 2015 at over
four times the purchase price. Cash consideration from the sale was
repatriated from GBP into Australian dollars in TFLP at the time of Local
World. Since then, due to Brexit, the Australian dollar has risen
approximately 20 percent against the pound, from GBP0.47 to GBP0.56 by June
30.

TFLP is also the largest shareholder in LTN. LTN has a valuable portfolio of
freehold gaming pubs in Australia. These pubs require time and expertise to
unlock full potential. TFLP preferred a long-term approach, however, the LTN
board is making progress towards this outcome with a cash distribution and
unrealised gains over the year.

The largest investment of TFLP is RCL. This is very long term in nature and
value is only realised as blocks of land are converted to actual cash sales
over time. RCL is continuing to unlock value in the underlying real estate
portfolio.  The most significant event during the course of the past
financial year has been the positive outcome in progressing a plan change at
Jacks Point in Queenstown. The first stage of this project was recently
released to the market with all 100 sections selling in line with list prices
on the day of release. The near term focus within RCL remains on continuing
to progress this project.

PGC and subsidiaries have been involved with a number of large and complex
litigations over the course of the financial year. This is an unwelcome, but
necessary, requirement of defending the balance sheet of PGC. We devote
considerable resources to this part of the business and fully expect our
position to be validated by the courts in all cases.  We will only comment on
particular proceedings as the results are made available.

For more information, please contact: David Lewis  +64 21 976 119
End CA:00288136 For:PGC    Type:FLLYR      Time:2016-08-30 09:53:46
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Pyne Gould Corporation Limited
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