Bulk cargo growth drives South Port ahead

SOUTH PORT NEW ZEALAND LIMITED


NZX Announcement and Media Release

For Release following 23 August 2018 Board Meeting


23 August 2018


Bulk cargo growth drives South Port ahead

South Port New Zealand Ltd’s reported after-tax profit for the June 2018 year is
$9.66M, up 14% on last year’s result of $8.45M. South Port Chairman,
Mr Rex Chapman said, “this is an excellent result for the Port, underpinned by a 13%
increase in cargo flows.”

Total cargo volume through Bluff set a further record of 3,445,000 tonnes
(FY17 3,053,000 tonnes) due to strong growth in bulk cargoes and a positive
development in shipping line connectivity.

“The mainstay of our business continues to be bulk cargoes representing 85% of all
volumes handled across the Port wharves,” said Mr Chapman.

Revenue from port and warehousing operations equated to $40.7 million
($36.9 million), an increase of 10%.

Higher volumes through the Port saw operating profit before financing costs and tax
increase by 13% to $13.8 million ($12.3 million).

Net financing costs were $579,000 ($449,000).

Earnings per share were 36.8 cents (32.2 cents per share). Net tangible asset
backing per share equates to $1.53 ($1.42 per share). In establishing the dividend
payment level, Directors took into account sustainable profit plus future maintenance
expenditure. Shareholders will receive a consistent final dividend of 18.5 cents,
which sustains a full year dividend of 26.0 cents, fully imputed.

The dividend payment represents a gross return of 5.2% (net 3.7%), based on a
share price of $7.00 as at 30 June 2018. A dividend payout ratio of 71% results for
2018 (using reported NPAT) and equates to 61% of free cash flow.

Mr Chapman said that “South Port has recently been successful in renewing its
insurance cover, including material damage, up to $250 million.”

Insurance companies are now raising the issue of whether ports need to carry out
additional strengthening work on critical assets in coming years to maintain
insurance cover. This could have significant cost implications for the Port and
Management has started to investigate these requirements.

P a g e | 2


TRADES

The Chief Executive, Mr Nigel Gear, said “Bulk forestry cargo (logs and woodchips)
for the first time in the Port’s history, have eclipsed the one million tonne mark and is
now the largest contributor to the Port’s volume and profit.”

“Favourable market conditions in both China and India have supported the increase
in log trade and the export of eucalyptus woodchip into Japan has remained
buoyant.

Due to a particularly dry summer and therefore poor pasture growth, the imports of
stock food increased this past year by 80% on the previous period. “Stock food has
been imported into the region for a number of years, primarily as supplementary feed
for the dairy industry. Specialised products are typically shipped in containers with
bulk coming in the form of molasses and palm kernel.”

In March 2018, the Mediterranean Shipping Company (MSC), which calls at South
Port on a weekly basis with their Capricorn Container Service, enhanced their
South-East Asia – Oceania network by splitting their service into two separate loops,
one to cover the South Island and the other the North Island.

“This greatly improves the service out of Bluff with increased capacity to
load/discharge more cargo and provide faster transit times to markets worldwide.
These changes have already delivered an increase in containerised cargoes handled
through the Port.”

During the year, South Port, MSC and customers also celebrated the
10
th
anniversary of the Capricorn Container Service’s first call into Bluff (MSC Hobart
arriving on 28 May 2008).

“The Capricorn call has been an integral part of the service offerings into the Port
during this time and provides a much needed competitive option to the importers and
exporters of the region.”

The New Zealand Aluminium Smelter at Bluff has continued to deliver strong export
volumes and has recently announced the decision to reopen the fourth potline.

“The Intermodal Freight Centre has been operating successfully for two years,
adjacent to the KiwiRail container transfer site at Invercargill. The ability to deliver
imported containers into Invercargill by rail has been a great success,” said Mr Gear.

During FY18 the paving of a 15,000m
2
log storage area was completed on the Island
Harbour.

Mr Gear said, “The development and refurbishment of new and existing
infrastructure on the Island Harbour is important to encourage new cargo volumes
across the wharves and to improve the quality of the existing operations.”

P a g e | 3

Design specifications have been finalised for the $5.0 million upgrade to the Town
Wharf fuel import berth. Construction beginning in February 2019 is expected to
take 12 months. “This significant project will future proof the wharf infrastructure for
the next 50 years and allow for the continued efficient distribution of fuel imports into
the Southland region and Wakatipu Basin.”

Mr Chapman noted concerns over an escalating tariff war between major
economies. However, trade forecasts for South Port remain steady with forestry
exporters still predicting healthy export market conditions in China, India and Japan.
Cargo volumes and revenues are expected to be stable.

South Port estimates that earnings in FY19 are likely to be approximately 10% lower.
Increased expenditure this year will continue to be a factor that will have a bearing
on profitability, however, the Directors will endeavour to maintain the current level of
dividend payment.



FOR FURTHER INFORMATION PLEASE CONTACT:


Mr Nigel Gear
Chief Executive
South Port New Zealand Ltd
Tel (03) 212 8159


Mr Warren Head
Managing Director
Head Consultants Ltd
Tel (03) 3650 344
Mobile 021 340 650
headconsultants@xtra.co.nz

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P:\Man:\JK:\AR&M2017
SOUTH PORT NEW ZEALAND LIMITED
Results for announcement to the market

Reporting Period 12 months to 30 June 2018
Previous Reporting
Period
6 months to 31 December 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
$40,705 10.4%
Profit (loss) from
ordinary activities after
tax attributable to
security holder
$9,658 14.3%
Net profit (loss)
attributable to security
holders
$9,658 14.3%

Interim/Final Dividend Amount per security Imputed amount per
security
$NZ0.185 $0.071944

Record Date 26 October 2018
Dividend Payment Date 6 November 2018

Comments: A brief

---

APPENDIX 7 – NZSX Listing Rules
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(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
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Tick as appropriate
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state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
x
whether:
InterimYear
x
SpecialDRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
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provide an
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ORexplanation
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Source of
Amount per security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FDP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
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OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
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Cease Quoting Old Security 5pm:
EMAIL: announce@nzx.com
Notice of event affecting securities
South Port New Zealand Limited
Lara StevensApproved by Directors' Resolution
(03) 212 8159(03) 212 868523082018
Fully paid sharesNZSPNE0001S8
In dollars and cents
$0.185
Enter N/A if not
applicable
$$0.012847$0.071944
$ Nil
NZD$0.032647
$NZD4,853,456.13
Date Payable
6 November, 2018
26 October 20186 November 2018

---

Reprinted May 2004 1 of 12
APPENDIX I (Rule 10.4)
PRELIMINARY *HALF YEAR/FULL YEAR REPORT ANNOUNCEMENT

SOUTH PORT NEW ZEALAND LIMITED
(Name of Listing Issuer)
For Half Year/Full Year Ended 30 June 2018
(referred to in this report as the "current half year/full year")
Preliminary *Half year/full year report on consolidated results (including the results for the previous corresponding *half year/full year) in accordance with Listing
Rule 10.4.2.
This report has been prepared in a manner which complies with generally accepted accounting practice and gives a true and fair view of the matters to which the
report relates [see Note (X) attached] and is based on *audited/unaudited financial statements. If the report is based on audited financial statements, any
qualification made by the auditor is to be attached.
The Listed Issuer *has/does not have a formally constituted Audit Committee of the Board of Directors.


[PLEASE REFER TO ATTACHED NOTES WHEN COMPLETING THIS FORM]
*CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE


1. CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE

Current
*half year/full year
$NZ'000
*Up/
Down
%
Previous
corresponding
*half year/full year
$NZ'000

1.1 OPERATING REVENUE









(a) Trading revenue

40,705

10.4%

36,868

(b) Other revenue

312

141.9 %

129

(c) Total operating revenue

41,017

10.9%

36,997

1.2 OPERATING *SURPLUS (DEFICIT) BEFORE TAXATION

13,508

14.4%

11,812

(a) Less taxation on operating result

(3,850)

14.4%

(3,364)

1.3 OPERATING *SURPLUS (DEFICIT) AFTER TAX

9,658

14.3%

8,448

(a) Extraordinary Items after tax [detail in Item 3]


-

-

(b) Unrealised net change in value of investment properties


-

-

1.4 NET *SURPLUS (DEFICIT) FOR THE PERIOD

9,658

14.3%

8,448

(a) Net Surplus (Deficit) attributable to minority interests


-



-

1.5 NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS OF
THE LISTED ISSUER

9,658

14.3%

8,448

*Delete as required

2 of 12 Reprinted May 2004

*CONSOLIDATED STATEMENT OF FINANCIAL
PERFORMANCE

2. DETAILS OF SPECIFIC RECEIPTS/OUTLAYS, REVENUES/EXPENSES FOR *HALF
YEAR/FULL YEAR
Current
*half year/full year
$NZ'000

Previous
corresponding
*half year/full year
$NZ'000

2.1 INCLUDED IN CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE






(a) Interest revenue included in Item 1.1(b)


22

10

(b) # Unusual items for separate disclosure (detail – Item 3)

-

-

(c) Equity earnings [detail – Item 16]

-

-

(d) Interest expense included in Item 1.2 (include all forms of interest, etc)

501

576

(e) Leasing and renting expenses

178

380

(f) Depreciation

3,361

3,291

(g) Diminution in the value of assets (other than depreciation)

47

5

(h) Amortisation of goodwill

-

-

(i) Amortisation of other intangible assets

-

-

(j) Impairment of goodwill

-

-

(k) Impairment of other intangible assets

-

-

2.2 SUPPLEMENTARY ITEMS


-

-

(a) # Interest costs excluded from Item 2.1(d) and capitalised

-

-

(b) # Outlays (other than those arising from the acquisition of an existing business) capitalised in
intangibles

-

-

(c) Unrecognised differences between the carrying value and market value of publicly traded
investments

-

-

# Items marked in this way need be shown only where their inclusion as revenue or
exclusion from expenses has had a material effect on reported *surplus (deficit)

Reprinted May 2004 3 of 12

GROUP – CURRENT *HALF YEAR/FULL YEAR
3. DISCONTINUED, UNUSUAL (INCLUDING NON RECURRING), AND EXTRAORDINARY
ITEMS OF THE GROUP

DETAILS AND COMMENTS

Operating Revenuer
$NZ'000

Operating Surplus
$NZ'000

Discontinued Activities:






(Disclose Operating Revenue and Operating Surplus)


-

-
























TOTAL DISCONTINUED ACTIVITIES

-


-


Material Unusual (including Non Recurring) Items (included in 1.2)

-

-


Description:














TOTAL MATERIAL NON RECURRING ITEMS

-

-



GROUP – CURRENT *HALF YEAR/FULL YEAR


DETAILS AND COMMENTS

Operating Revenue
$NZ'000


Operating Surplus
$NZ'000

Extraordinary Items (Ref. Item 1.3(a))


-

-

Description:

-

-






TOTAL EXTRAORDINARY ITEMS

-

-

* Delete as required

4 of 12 Reprinted May 2004

STATEMENT OF MOVEMENTS IN EQUITY


4. STATEMENT OF MOVEMENTS IN EQUITY

Current *half year/full
year
$NZ'000

Previous corresponding
*half year/full year
$NZ'000

4.1 *NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS OF LISTED ISSUER


9,658

8,448

(a) *Net Surplus (Deficit) attributable to minority interest


-

-

4.2 OTHER RECOGNISED REVENUE AND EXPENSES






(a) * Increases (decreases) in revaluation reserves


-

-

(b) Change in fair value of cash flow hedges


-

-

(c) Minority interest in other recognised revenue and expenses

-

-



4.3 TOTAL RECOGNISED REVENUES AND EXPENSES


9,658

8,448

4.4 OTHER MOVEMENTS



(a) Contributions by Owners


-

-

(b) Distributions to Owners

(6,821)


(6,821)


(c) Other

-

-

4.5 EQUITY AT BEGINNING OF HALF YEAR/FULL YEAR*


37,223

35,596

4.6 EQUITY AT END OF HALF YEAR/FULL YEAR


40,060


37,223


EARNINGS PER SECURITY

5. EARNINGS PER SECURITY
Calculation of basic and fully diluted, EPS in accordance with IAS33: Earnings Per Share
Current *half year/full
year
$NZ'000
Previous corresponding
*half year/full year
$NZ'000

(a) Basic EPS


$0.368


$0.322

(b) Diluted EPS (if materially different from (a))


-


-



6. MATERIAL ACQUISITIONS OF SUBSIDIARIES [see Note (VII) attached]:


(a) Name of subsidiary or group of subsidiaries



-

-
(b) Percentage of ownership acquired
$ -

$ -

(c) Contribution to consolidated net *Surplus (Deficit) (item 1.4)
$ -

$ -

(d) Date from which such contribution has been calculated
-

-

$ -

$ -

Reprinted May 2004 5 of 12

7. MATERIAL DISPOSALS OF SUBSIDIARIES [see Note (VII) attached]:


(a) Name of subsidiary or group of subsidiaries


-

-

(b) Contribution of subsidiaries to consolidated net *Surplus (Deficit) (item 1.4)

$ -


$ - -


(c) Date to which such contribution has been calculated

-


-


(d) Contribution to consolidated net *Surplus (Deficit) (item 1.4) for the previous corresponding
half year/full year

$ -

$ -


(e) Contribution to consolidated net *Surplus (Deficit) (item 1.4) from sale of subsidiary

$ -


$ -



8. REPORTS FOR INDUSTRY AND GEOGRAPHICAL SEGMENTS

Information on the industry and geographical segments of the Listed Issuer to be reported for the *half year/full year in accordance with the provisions of SSAP:23:
Financial Reporting for Segments. Because of the differing nature and extent of segments among Listed Issuers, no complete proforma is provided, and the
segment information should be completed separately and attached to this report. However, the following shows a suitable list of items for presentation and
indicates which amounts should agree with items included elsewhere in the *half year/full year report:

SEGMENTS

Industry
- Operating revenue:
 Sales to customer outside the group
 Intersegment sales
 Unallocated revenue
- Total revenue [consolidated total equal to Item 1.1(c)]
- Segment result
- Unallocated expenses
- Operating Surplus (Deficit) after tax [Item 1.3]
- Segment assets
- Unallocated assets
- Total assets [Equal to Item 9.3]
Geographical
- Operating revenue:
 Sales to customer outside the group
 Intersegment sales
 Unallocated revenue
- Total revenue [consolidated total equal to Item 1.1(c)]
- Segment result
- Unallocated expenses
- Operating Surplus (Deficit) after tax [Item 1.3]
- Segment assets
- Unallocated assets
- Total assets [Equal to Item 9.3]

[Note (VIII) attached has particular relevance for the preparation of this statement]
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

9. CURRENT ASSETS



At end of current
*half year/full year
$NZ'000

As shown in last
Annual Report
$NZ'000
If half yearly
as shown in last
Half Yearly Report
$NZ'000

(a) Cash

991

1,675


(b) Trade receivables

5,648

4,310



(c) Investments

-

-



(d) Inventories

-

-



(e) Other assets, current

-

-



TOTAL CURRENT ASSETS

6,639

5,985

6 of 12 Reprinted May 2004

9.1 NON-CURRENT ASSETS

(a) Trade receivables

-

-


(b) Investments

-

-



(c) Inventories

-

-



(d) Property, plant and equipment

47,471

46,570



(e) Goodwill

-

-



(f) Deferred Taxation Assets

-

-



(g) Other Intangible Assets

-

-



(h) Other assets, non current

-

-



9.2 TOTAL NON- CURRENT ASSETS

47,471

46,570


9.3 TOTAL ASSETS

54,110

52,555



9.4 CURRENT LIABILITIES



(a) Trade Creditors

3,307

2,816



(b) Income in advance, current

81

82



(c) Secured loans

-

-



(d) Unsecured loans

-

-



(e) Provisions, current

1,132

868



(f) Other liabilities, current

1,629

1,204



TOTAL CURRENT LIABILITIES


6,149

4,970


9.5 NON- CURRENT LIABILITIES




(a) Accounts payable, non-current

-

-



(b) Secured loans

7,200

9,600



(c) Unsecured loans

-

-



(d) Provisions, non-current

47

67



(e) Deferred Taxation Liability, non-current

301

441



(f) Other liabilities, non-current

353

254


9.6 TOTAL NON-CURRENT LIABILITIES

7,901

10,362

9.7 TOTAL LIABILITIES

14,050

15,332

9.8 NET ASSETS

40,060

37,223


9.9 SHAREHOLDERS’ EQUITY



(a) Share capital (optional)

9,418

9,418



(b) Reserves (optional) (i) Revaluation reserve

21

21



(ii) Other reserves

-

-



(c) Retained Surplus (accumulated Deficit) (optional)

30,621

27,784

Reprinted May 2004 7 of 12

9.10 SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO MEMBERS OF THE
LISTED ISSUER


40,060

37,223



(a) Minority equity interests in subsidiaries

-

-



9.11 TOTAL SHAREHOLDERS’ EQUITY


40,060

37,223



(a) Returns on Assets (%) (EBIT divided by Total Assets)

26.3%

23.5%



(b) Return on Equity (%) (Net Income divided by Shareholders’ Equity)

25.0%

23.2%



(c) Debt to Equity Ratio (%) (Total Liabilities divided by Shareholders’)
Equity)


35.1%


41.2%


(d) Net Tangible Assets per Security ($) $1.53 $1.42

[See Note (IX) attached] CONSOLIDATED STATEMENT OF CASH FLOWS FOR *HALF YEAR/FULL YEAR

10. CASH FLOWS RELATING TO OPERATING ACTIVITIES

Current
*half year/full year
$NZ'000
Previous corresponding
*half year/full year
$NZ'000

(a) Receipts from customers

39,366

37,302

(b) Interest received

22

10

(c) Dividends received

-

-


(d) Payment to suppliers and employees

(22,614)

(21,738)

(e) Interest paid

(505)

(572)

(f) Income taxes paid

(3,564)

(3,185)

(g) Other cash flows relating to operating activities

(363)

251

NET OPERATING FLOWS


12,342

12,068

[See Note (IX) attached]
11. CASH FLOWS RELATED TO INVESTING ACTIVITIES


Current
*half year/full year
$NZ'000
Previous corresponding
*half year/full year
$NZ'000

(a) Cash proceeds from sale of property, plant and equipment

388

2

(b) Cash proceeds from sale of equity investments

-

-

(c) Loans repaid by other entities

-

-

(d) Cash paid for purchases of property, plant and equipment

(4,193)

(3,382)

(e) Interest paid - capitalised

-

-

(f) Cash paid for purchases of equity investments

-

-

(g) Loans to other entitles

-

-

(h) Other cash flows relating to investing activities

-

-

NET INVESTING CASH FLOWS


(3,805)

(3,380)

8 of 12 Reprinted May 2004
[See Note (IX) attached]
12. CASH FLOWS RELATED TO FINANCING ACTIVITIES


Current
*half year/full year
$NZ'000
Previous corresponding
*half year/full year
$NZ'000

(a) Cash proceeds from issue of shares, options, etc

-

-

(b) Borrowings

-

-

(c) Repayment of borrowings

(2,400)

(1,100)

(d) Dividend paid

(6,821)

(6,821)

(e) Other cash flows relating to financing activities

-

-

NET FINANCING CASH FLOWS

(9,221)


(7,921)

[See Note (IX) attached]
13. NET INCREASE (DECREASE IN CASH HELD)

Current
*half year/full year
$NZ'000
Previous corresponding
*half year/full year
$NZ'000

(a) Cash at beginning of *half year/full year

1,675

908

(b) Exchange rate adjustments to Item 12.3(a) above

-

-

(C) CASH AT END OF *HALF YEAR/FULL YEAR

991

1,675



14. NON-CASH FINANCING AND INVESTING ACTIVITIES

Provide details of financing and investing transactions which have had a material effect on group assets and liabilities but did not involve cash flows.





15. RECONCILIATION OF CASH

For the purposes of the above statement of cash flows, cash includes .............................................................................................................




Cash at the end of the *half year/full year as shown in the statement of cash flows
is reconciled to the related items in the financial statements as follows:

Current
*half year/full year
$NZ'000
Previous corresponding
*half year/full year
$NZ'000

Cash on hand and at bank

991

1,671

Deposits at call

-

4

Bank overdraft

-

-

Other (provide details eg. Term Deposits)


-

-

TOTAL = CASH AT END OF *HALF YEAR/FULL YEAR [Item 13(c)]


991

1,675

Reprinted May 2004 9 of 12
EQUITY ACCOUNTED EARNIGS FROM ASSOCIATES
16. EQUITY ACCOUNTED INVESTMENTS IN ASSOCIATES

Information attributable to the reporting group’s share of investments in
associates and other material interests to be disclosed by way of separate
note below (refer FRS-38 Accounting for Investments in Associates).

Current
*half year/full year
$NZ'000
Previous corresponding
*half year/full year
$NZ'000

16.1 GROUP SHARE OF RESULTS OF ASSOCIATES

-

-

(a) OPERATING *SURPLUS (DEFICIT) BEFORE TAX

-

-

(b) Less Tax

-

-

(c) OPERATING *SURPLUS (DEFICIT) AFTER TAX

-

-

(i) Extraordinary items

-

-

(d) NET *SURPLUS (DEFICIT) AND EXTRAORDINARY ITEMS AFTER TAX

-

-

16.2 MATERIAL INTERESTS IN CORPORATIONS NOT BEING SUBSIDIARIES

(a) THE GROUP HAS A MATERIAL (FROM GROUP'S VIEWPOINT) INTEREST IN THE FOLLOWING CORPORATIONS:



Name

Percentage of ordinary
shares held at end of
*half year/full year

Contribution to net
*surplus (deficit) (item 1.5)

EQUITY ACCOUNTED
ASSOCIATES


Current
*half year/
full year
Previous
corresponding
*half year/
full year

Current
*half year/full year
$NZ'000
Previous
corresponding
*half year/full year
$NZ'000

-

-

Equity Accounted in Current Year













-

-





OTHER MATERIAL INTERESTS











Not Equity Accounted in Current Year







*Delete as required

10 of 12 Reprinted May 2004
EQUITY ACCOUNTED INVESTMENT IN ASSOCIATES
Current
*half year/full year
$NZ'000
Previous corresponding
*half year/full year
$NZ'000

(b) INVESTMENT IN ASSOCIATES




Carrying value of investments in associates at beginning of half year/full
year

-

-


Share of changes in associates’ post acquisition surpluses/and reserves:






- Retained surplus

-

-

- Reserves

-

-

Net goodwill amortisation and impairment adjustments in the period





Less Dividends received in the period




Equity carrying value of investments at the end of half year/full year






Amount of goodwill included in the carrying value at end of that half year/full
year


-

-


17. ISSUED AND QUOTED SECURITIES AT END OF CURRENT *HALF YEAR/FULL YEAR

Category of Securities Issued Number Quoted Number Cents Paid-Up Value
(if not fully paid)


PREFERENCE SHARES:


# (Description)

Issued during current *half year/full year


ORDINARY SHARES


Issued during current *half year/full year 26,234,898 9,418,383




CONVERTIBLE NOTES


# (Description)

Issued during current *half year/full year



OPTIONS:

Exercise Price Expiry Date

Issued during current *half year/full year

DEBENTURES – Total only: $
UNSECURED NOTES – Totals only: $
OTHER SECURITIES $ $
# Description includes rate of dividend or interest and any redemption or conversion rights together with the prices and dates thereof.

Reprinted May 2004 11 of 12

18. COMMENTS BY DIRECTORS If no report in any section, state NIL. If insufficient space below, provide details in the pages attached to this report.

(a) Material factors affecting the revenues and expenses of the group for the current *half year/full year

(b) Significant trends or events since end of current *half year/full year

(c) Changes in accounting policies since last Annual Report and/or last Half Yearly Report to be disclosed – The Group accounting policies remain
unchanged from the previous year.

(d) Critical Accounting Policies – Management believes the following to be critical accounting policies. That is they are both important to the portrayal of the
Issuer’s financial condition and results, as they require management to make judgments and estimates about matters that they are inherently uncertain

(e) Management's discussion and analysis of financial condition, result, and/or operations (optional) – this section should contain forward looking statements
that should outline where these involved risk and uncertainty. Refer Press Release attached

(f) Other Comments

19. DIVIDEND

(a) Dividend Yield as at balance date (%) (Annual dividend per share divided by price per share) – 5.16%

(b) Tax Adjusted Dividend Yield as at balance date (%) (Annual net dividend per share divided by price per share) - 3.71%

20. ANNUAL MEETING (If full year report)

(a) To be held at South Port’s Board Room, Island Harbour, Bluff

(b) Date: Thursday, 25 October 2018 Time: 10.45 a.m.

(c) Approximate date of availability of Annual Report: 19 September 2018

If this *half year/full year report was approved by resolution of the Board of Directors, please indicate date of meeting: 23 August 2018
(date)






........................................................................................................................... ................................................................................
(Signed by) Authorised Officer of Listed Issuer 23 August 2018
L. Stevens, Finance Manager

*Delete as required