Sharemarket volatility Impacts Kingfish Interim Result

Kingfish Limited results announcement


Results for announcement to the market
Name of issuer Kingfish Limited
Reporting Period 6 months to 30 September 2023
Previous Reporting Period 6 months to 30 September 2022
Currency NZ$
Amount (000s) Percentage change
Revenue/ (Loss) from
continuing operations
($12,297) +73%
Total Revenue/ (Loss) ($12,297) +73%
Net profit/(loss) from
continuing operations
($14,700) +70%
Total net profit/(loss) ($14,700) +70%
Interim/Final Dividend
Amount per Quoted Equity
Security
$NZ 2.64 cents per share
Imputed amount per Quoted
Equity Security
$NZ 0.00226100
Record Date 1 December 2023
Dividend Payment Date 15 December 2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.2961 $1.3666
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

20 November 2023
Reviewed interim financial statements accompany this announcement.

---

1
Total shareholder return – the return combines the share price performance, the warrant price performance (if any), the
net value of converting any warrants into shares (if any), 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 percentage change in the the underlying value of the investment portfolio adjusted
for dividends (and other capital management initiatives) and after expenses, fees and tax,
3
Gross performance return – The portfolio performance in terms of stock selection, before expenses, fees and tax.
4
In accordance with the Management Agreement, the management fee rate has reduced from 1.25%pa to 0.75%pa for the
period, (i.e. a 50 basis point reduction), because the six month gross performance of Kingfish (as calculated for the fulcrum
fee rebate) was 5.8 percentage points below the change in the S&P/NZX Bank Bill 90 day index rate for the six months of
positive 2.7%.
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:
20 November 2023

Sharemarket volatility Impacts Kingfish Interim Result

• Net loss for the six months ended 30 September 2023 $14.7m
• Total shareholder return
1
+0.4%
• Adjusted NAV return (after expenses, fees & tax)
2
-3.3%
• Dividends paid during the period (cents per share) 5.61 cps

NZX listed investment company Kingfish Limited (NZX: KFL) has reported a first half loss (for the six
months ended 30 September 2023) of $14.7m.
Key elements of the half year result include losses on investments of $18.0m, offset by dividend and
interest income of $5.7m, less operating expenses and tax of $2.4m.

Chair of Kingfish, Andy Coupe said: “Kingfish, consistent with the broader New Zealand sharemarket,
has experienced another difficult period with uncertain market conditions continuing to dominate,
influenced by inflationary concerns (both in New Zealand and internationally), rising interest rates,
and extreme political tension on the international front.”

The portfolio’s gross performance return
3
before fees and expenses (for the six months) was
negative 2.8% and the adjusted net asset value (NAV) return
2
was negative 3.3%, compared to the
S&P/NZX50G Index which was negative 4.9% over the same period.

The lower return delivered by the portfolio activated the management fee rebate (the fulcrum fee
4
)
which reduced the management fee for the period from 1.25% to 0.75%.

Kingfish investors continued to receive distributions consistent with the company distribution policy
(2% of average NAV per quarter) with 5.61 cents per share paid to shareholders during the six
months ended 30 September 2023. On 20 November 2023, the Board declared a dividend of 2.64
cents per share to be paid to shareholders on 15 December 2023 with a record date of 1 December
2023.

Portfolio Manager, Matt Peek said: “The period saw challenges for Kingfish's companies including a
particularly tough economic environment, especially in New Zealand, which resulted in subdued
demand. At the same time most companies have been contending with cost pressures from the

inflationary environment. Generally speaking, this short term dynamic weighed on the progress
portfolio companies have made through taking market share or other initiatives to improve business
performance.”

Matt Peek added: “Kingfish's portfolio outperformed the S&P/NZX50G index during the period. In
particular, this was supported by strong performance from infrastructure investment company
Infratil (+13%) and a recovery in the retirement village operators, off the back of the residential
housing market showing increasing signs of stability (Ryman +20%, Summerset +17%). We continue
to target companies with strong long term growth prospects and adjust the portfolio when we see
opportunities.”

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 $22 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

---

Independentauditor’sreviewreport
TotheshareholdersofKingfishLimited
Reportontheinterimfinancialstatements
Ourconclusion
WehavereviewedtheinterimfinancialstatementsofKingfishLimited(theCompany),whichcomprisethe
statementoffinancialpositionasat30September2023,andthestatementofcomprehensiveincome,the
statementofchangesinequityandthestatementofcashflowsforthesixmonthsendedonthatdate,and
significantaccountingpoliciesandotherexplanatoryinformation.
Basedonourreview,nothinghascometoourattentionthatcausesustobelievethattheseaccompanying
interimfinancialstatementsoftheCompanydonotpresentfairly,inallmaterialrespects,thefinancial
positionoftheCompanyasat30September2023,anditsfinancialperformanceandcashflowsforthesix
monthsthenended,inaccordancewithInternationalAccountingStandard34InterimFinancialReporting
(IAS34)andNewZealandEquivalenttoInternationalAccountingStandard34InterimFinancialReporting
(NZIAS34).
Basisforconclusion
WeconductedourreviewinaccordancewiththeNewZealandStandardonReviewEngagements2410
(Revised)ReviewofFinancialStatementsPerformedbytheIndependentAuditoroftheEntity(NZSRE
2410(Revised)).OurresponsibilitiesarefurtherdescribedintheAuditor’sresponsibilitiesforthereviewof
theinterimfinancialstatementssectionofourreport.
WeareindependentoftheCompanyinaccordancewiththerelevantethicalrequirementsinNewZealand
relatingtotheauditoftheannualfinancialstatements,andwehavefulfilledourotherethical
responsibilitiesinaccordancewiththeseethicalrequirements.Otherthaninourcapacityasauditor,we
havenorelationshipwith,orinterestsin,theCompany.
ResponsibilitiesoftheDirectorsfortheinterimfinancialstatements
TheDirectorsoftheCompanyareresponsible,onbehalfoftheCompany,forthepreparationandfair
presentationoftheseinterimfinancialstatementsinaccordancewithIAS34andNZIAS34andforsuch
internalcontrolastheDirectorsdetermineisnecessarytoenablethepreparationandfairpresentationof
theinterimfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
Auditor’sresponsibilitiesforthereviewoftheinterimfinancialstatements
Ourresponsibilityistoexpressaconclusionontheinterimfinancialstatementsbasedonourreview.NZ
SRE2410(Revised)requiresustoconcludewhetheranythinghascometoourattentionthatcausesusto
believethattheinterimfinancialstatements,takenasawhole,arenotpreparedinallmaterialrespects,in
accordancewithIAS34andNZIAS34.
AreviewofinterimfinancialstatementsinaccordancewithNZSRE2410(Revised)isalimitedassurance
engagement.Weperformprocedures,primarilyconsistingofmakingenquiries,primarilyofpersons
responsibleforfinancialandaccountingmatters,andapplyinganalyticalandotherreviewprocedures.The
proceduresperformedinareviewaresubstantiallylessthanthoseperformedinanauditconductedin
accordancewithInternationalStandardsonAuditing(NewZealand)andInternationalStandardson
Auditingandconsequentlydoesnotenableustoobtainassurancethatwemightidentifyinanaudit.
Accordingly,wedonotexpressanauditopinionontheseinterimfinancialstatements.
PricewaterhouseCoopers,PwCTower,15CustomsStreetWest,PrivateBag92162,Auckland1142,NewZealand
T:+6493558000,F:+6493558001pwc.co.nz

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 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 AccountantsAuckland
20 November 2023
PwC