More money at the end of the rainbow for Rangatira
Putting tiny tots behind the wheel could prove a winner for Rangatira Investments thanks to a new Driver's Town attraction at Rainbow's End.
The Auckland amusement park is one of more than a dozen companies making up Rangatira's $220 million portfolio, which returned $5.9m profit after tax for the six months ending September.
Auckland's wet weather in June and August reduced earnings at Rainbow's End , affecting Rangatira's half-year financial results.
But Rangatira chief executive Phil Veal said the park's earning should improve over the summer as a result of the new AA Driver's Town where children aged five to 13 would be able to drive a mini Suzuki Swift around a replica town with traffic lights, roundabouts, parking spaces, a car wash, and petrol station.
Veal said another strong contributor was Polynesian Spa at Rotorua which had tapped into the Asian tourist market.
Christchurch sausage maker Hellers also delivered the goods after Rangatira recently lifted its shareholding to 62 per cent.
Rangatira's investment income of $4m was boosted by an additional $1.9m from the sale of shares in some entities. Last year's profit for the corresponding period was $3.1m.
Directors struck an interim dividend of 22c a share, and Veal forecast a 10 per cent rise in earnings for the full year.
Rangatira is owned by several charitable trusts, the largest being the founder JR McKenzie Trust, with more than $6m granted annually to more than 50 organisations.
Rangatira shares are trading on Unlisted at $9.80 which compares with $12.43 net asset backing. They traditionally trade at a discount to asset backing Veal said.