Rangatira Investments Annual Report 2021 - Report - Page 10
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Magritek’s orders grew by 12 per cent year-on-year which was stronger than expected. Revenue growth lagged due to the production
facility operating at less than capacity through Covid lockdowns in Germany. The business is now working through this backlog and
strong orders have continued through the new financial year.
New product development accelerated, advancing the product features and capabilities. We think the Company is well-positioned to
continue to grow from here, although in a more competitive market than it has had historically.
During the year, largely due to a strong cash position, the business was able to buy back Victoria University’s 10 per cent holding (these
shares were then cancelled) effectively increasing the remaining shareholder’s proportion.
Post-year end, Magritek received investment from a large US-based investment fund as some long-term shareholders sold down their
positions and executives required capital to exercise staff options. We think this new shareholder will be a good fit with us and help
advance the business growth.
Mrs Higgins had a solid year. Although its food service business was down due to weakness in the hospitality sector, sales into
supermarkets have grown rapidly. There is still capacity in its manufacturing capability, and we are confident that we can achieve
further earnings growth without a significant capital outlay.
During the year, we appointed Reuel Newman as the new General Manager. Reuel has been with Mrs Higgins for two years as the Head
of Sales & Marketing, with earlier roles at Davies Foods and Coca-Cola.
Partners Life made good progress in FY21 as it grew its in-force market share to 16 per cent (second behind AIA). New life insurance
registrations slowed during lockdown but the market outlook remains positive. In July 2020, we acquired further shares in the
Company alongside existing shareholders, maintaining our shareholding in percentage terms.
Partners Life announced in December that it agreed to acquire BNZ Life for NZ$290m (currently under review by the Overseas
Investment Office). This follows other banks exiting the market as they seek to simplify their operations to their core banking and
Polynesian Spa is no doubt our portfolio company that has been most impacted by the pandemic. A large portion of its customer base
are tourists from China, Japan and Korea. The business has unfortunately had to reduce its opening hours and staff numbers but has
done a good job repositioning its pricing and marketing to a domestic audience. Management and staff have done an excellent job in
what is a very trying time for the business. The Company is currently not paying Rangatira dividends, but is able to remain profitable on
domestic tourist volumes.
We believe that when international borders reopen, New Zealand will be a popular destination, and that authentic, high quality tourism
assets like Polynesian Spa will do well.