Strong result for Kingfish in recovering market environment

Kingfish Limited results announcement


Results for announcement to the market
Name of issuer Kingfish Limited
Reporting Period 6 months to 30 September 2020
Previous Reporting Period 6 months to 30 September 2019
Currency NZ$
Amount (000s) Percentage change
Revenue from continuing
operations
$95,573 +364%
Total Revenue $95,573 +364%
Net profit/(loss) from
continuing operations
$86,959 +388%
Total net profit/(loss) $86,959 +388%
Interim/Final Dividend
Amount per Quoted Equity
Security
$NZ 3.46 cents per share
Imputed amount per Quoted
Equity Security
$NZ 0.00078618
Record Date 3 December 2020
Dividend Payment Date 18 December 2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.6749 $1.5185
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
The financial statements attached to this report have been reviewed
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.
Authority for this announcement
Name of person

authorised
to make this announcement
W.A. Burns
Contact person for this
announcement
W.A. Burns
Contact phone number (09) 4840352
Contact email address enquire@kingfish.co.nz
Date of release through MAP

23 November 2020
Reviewed interim financial statements accompany this announcement.

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As at 30 September 2020
1
Total shareholder return – the return combines the share price performance, the warrant price performance, the net value
of converting any warrants into shares, and the dividends paid to shareholders. It assumes all dividends are reinvested in
the company’s dividend reinvestment plan, and that shareholders exercise their warrants, (if they were in the money), at
warrant expiry date.

2
Adjusted net asset value return – the net return to an investor after expenses, fees and tax.

3
Gross performance return – The Manager’s portfolio performance in terms of stock selection, before expenses, fees and
tax.

The total shareholder return, adjusted net asset value and gross performance return methodologies are described in the Kingfish Non-GAAP
Financial Information Policy. A copy of the policy is available at http://www.kingfish.co.nz/about-kingfish/kingfish-policies/

For immediate release:
23 November 2020

Strong result for Kingfish in recovering market environment

• Interim 2020 net profit $87.0m
• Total shareholder return +34.2%
1

• Adjusted NAV return 19.5%
2
(after expenses, fees and tax)
• 6.31 cents per share in dividends paid during the period

NZX listed investment company Kingfish Limited (NZX: KFL) today announced a net operating profit
for the six months ended 30 September 2020 of $87.0m, well ahead of the interim September 2019
profit of $17.8m. A significant part of the strong first half result is the recovery from the disruption
to equities markets during February and March, when the Covid-19 pandemic and its implications
delivered high levels of uncertainty and anxiety to equities markets around the world. However, the
six month result has pushed well beyond just a recovery and is delivering strong investment gains, as
investors look towards equity markets for returns in a low interest rate environment.

Key elements of the half year result include gains on investments of $92.6m, dividend and interest
income of $3.0m, offset by operating expenses and tax of $8.6m.

Total shareholder return for the six months was +34.2%
1
, while the gross performance return for the
six months was +23.1%
3
, +15.6% ahead of the S&P/NZX50G which was up 7.5% over the same
period.

Kingfish investors enjoyed the benefits of a strong, consistent (2% of average NAV per quarter)
distribution policy with 6.31 cents per share paid to shareholders during the six months ended 30
September 2020. On 23 November 2020, the Board declared a dividend of 3.46 cents per share to be
paid to shareholders on 18 December 2020 with a record date of 3 December 2020.

Kingfish has 61,578,083 warrants (KFLWF) on issue that may be exercised on 12 March 2021. The
exercise price of each warrant is $1.64 less the dividends per share declared by the company
between 9 March 2020 and the announcement of the 12 March 2021 exercise price. Dividends
totalling 13.01 cents per share have now been declared and there are no more dividends to be
declared in the remaining period up to the announcement of the 12 March 2021 exercise price.

Chair of Kingfish, Alistair Ryan said: “During the first half of the financial year the Kingfish portfolio
delivered significant returns for shareholders with a strong share price, regular dividends and
warrants. While part of the standout result for the six months is the equity market recovery, post the

As at 30 September 2020
1
Total shareholder return – the return combines the share price performance, the warrant price performance, the net value
of converting any warrants into shares, and the dividends paid to shareholders. It assumes all dividends are reinvested in
the company’s dividend reinvestment plan, and that shareholders exercise their warrants, (if they were in the money), at
warrant expiry date.

2
Adjusted net asset value return – the net return to an investor after expenses, fees and tax.

3
Gross performance return – The Manager’s portfolio performance in terms of stock selection, before expenses, fees and
tax.

The total shareholder return, adjusted net asset value and gross performance return methodologies are described in the Kingfish Non-GAAP
Financial Information Policy. A copy of the policy is available at http://www.kingfish.co.nz/about-kingfish/kingfish-policies/

initial COVID-19 market disruption, we are also seeing significant gains due to the rigorous and
robust investment approach in the construction of the Kingfish portfolio.”

During the six months all of the portfolio companies gained in value, with the exception of a2 Milk.
Senior Portfolio Manager, Sam Dickie said: “The combination of our tried and true investment
process, plus the portfolio enhancements during the crises allowed us to outperform the broad
market.”

Sam Dickie added: “While the COVID-19 crisis remains unpredictable, the New Zealand sharemarket
and global markets will likely continue to experience periods of volatility, we continue to actively
manage our portfolio of high-quality companies.”

For further information, please contact:

Corporate Manager
Kingfish Limited
Tel: (09) 484 0352




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. Fisher Funds and its related entities
currently have over $11 billion of funds under management. 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. /ends

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PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Independent auditor’s review report
To the shareholders of Kingfish Limited

Report on the interim financial statements

Our conclusion
We have reviewed the interim financial statements of Kingfish Limited (the Company), which
comprise the statement of financial position as at 30 September 2020, and the statement of
comprehensive income, the statement of changes in equity and the statement of cash flows for the six
months ended on that date, and significant accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that these
accompanying interim financial statements of the Company do not present fairly, in all material
respects, the financial position of the Company as at 30 September 2020, and its financial
performance and cash flows for the six months then ended, in accordance with International
Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to
International Accounting Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity (NZ
SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s responsibilities for the
review of the interim financial statements section of our report.

We are independent of the Company in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our
firm carries out agreed-upon procedures for the Company over performance fee calculations. The
provision of these other services has not impaired our independence.
Directors’ responsibility for the interim financial statements
The Directors of the Company are responsible, on behalf of the Company, for the preparation and fair
presentation of these interim financial statements in accordance with IAS 34 and NZ IAS 34 and for
such internal control as the Directors determine is necessary to enable the preparation and fair
presentation of interim financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s responsibility for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements, taken as a whole, are not prepared in all
material respects, in accordance with IAS 34 and NZ IAS 34. A review of interim financial statements
in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform
procedures, primarily consisting of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing (New Zealand) and International
Standards on Auditing and consequently does not enable us to obtain assurance that we might identify
in an audit. Accordingly, we do not express an audit opinion on these interim financial statements.

Who we report to
This report is made solely to the Company’s shareholders, as a body. Our review work has been
undertaken so that we might state to the Company’s shareholders those matters which we are required
to state to them in our review report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the shareholders, as a body, for our
review procedures, for this report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Philip
Taylor.
For and on behalf of:
Chartered Accountants Auckland
23 November 2020