NZ Stock Exchange Profit Announcements: Feb - May 2009

[Share Investor]

INFRATIL LIMITED
RESULTS FOR THE YEAR ENDED 31 MARCH 2009
18 MAY 2009

For the year ended 31 March 2009 Infratil’s consolidated earnings before interest, tax, depreciation, amortisation and revaluations (EBITDAF) were $356 million, up 13% from
$316 million for the previous year.

The operating surplus (earnings after interest, depreciation and amortisation) was $77 million, from $88 million and operating cash flows were $118 million compared with
$164 million a year ago. Operating cash flows adjusted for movements in working capital increased to $144 million from $134 million.

The net loss after tax and minority interests was $191 million compared with a loss of $2 million in 2008, largely attributable to $179 million of non-cash write downs associated with listed investments.

Investment and capital spending amounted to $300 million, down from $507 million in 2008.

A fully imputed dividend of 3.75 cents per share is to be paid in July. The dividend is unchanged from last year.

YE 31 March
$Millions 2009 2008
Earnings (EBITDAF) 356.3 315.9
Net interest (176.9) (148.8)
Depreciation & Amortisation
(102.2) (79.3)
Operating Surplus 77.2 87.8
Derivative Change 8.0 2.9
Realisation/Impairment (179.0) (15.4)
Tax (34.6) (22.6)
Minorities (62.6) (54.4)
Net Parent (Loss) (191.0) (1.7)

The last year witnessed an extraordinary test of the global financial markets and the companies functioning within it. However, while the extent of the market disruption makes performance assessment difficult, Infratil did not deliver on the primary goal of providing its shareholders with superior risk-adjusted returns. Infratil shares lost 29.0% of their value (including dividends) in the year to March 31, 2009, compared to a 25.4% fall of the NZX gross index over the same period.

Despite the share market returns, Infratil’s financial and operational performance was in the main, satisfactory. A conservative approach to balance sheet management meant sufficient capital and liquidity was available to continue to fund long term investment programmes. Infratil’s core businesses; TrustPower, Wellington Airport, and Infratil Energy Australia improved earnings over the previous year, while the NZ Bus results were consistent with 2008. Only the European Airports were really hurt by the recession, while two major investments, Auckland Airport and Energy Developments saw their prices significantly impacted by a falling share market.

The economic environment has resulted in a thorough review of activities and capital allocation. Fundamentally, Infratil’s ability to deliver acceptable returns for its shareholders depends on being well positioned in good growth sectors. The focus on energy, airports, and public transport continue to offer excellent long-term prospects, but some investments have not performed and the immediate objective is to either improve their returns or re-allocate capital.

Although management’s priority is capital preservation and performance, new investment opportunities continue to be progressed with the objective of positioning Infratil for future growth without unduly committing scarce capital in the short term. While we have not yet seen distressed sales of quality infrastructure assets in Infratil’s sectors, opportunities will emerge, not least because both New Zealand and Australia will require significant private capital to finance planned new social and economic infrastructure.

BUSINESS RESULTS

CONTRIBUTIONS TO EBITDAF (EARNINGS BEFORE INTEREST, TAX, DEPRECIATION, AMORTISATION AND FAIR MARKET ADJUSTMENTS)
31 MARCH

$ MILLION 2009 2008
TrustPower 260.0 208.0
IEA Group 19.9 12.0
Wellington Airport 65.4 60.0
Infratil Airports Europe (18.9) 1.2
NZBus 40.0 41.9
Other, Eliminations, etc (10.1) (7.2)
Total 356.3 315.9

TRUSTPOWER delivered record earnings despite experiencing extremely volatile energy prices and poor wind and hydro generation conditions. The result is testament to excellent risk management and the benefits of diversified generation catchments. Retail growth reflected the quality of Trustpower’s customer service and brand in the residential market.

TrustPower completed the commission of its South Australian windfarm on time and under budget and progressed the consenting of several major NZ generation projects. Infratil’s cash dividends from TrustPower rose to $65 million from $46 million over the prior year.

WELLINGTON AIRPORT had a year of record activity levels and earnings with cash contributions to Infratil of $23 million up from $19 million the prior year. A weak economy was balanced by heightened competition between Pacific Blue and Air New Zealand. The announced commencement of Jetstar trunk services in mid 2009 and Pacific Blue’s plans for regional services indicates that the trend to lower cost and more convenient air travel will continue. The Airport’s property income rose to $8.3 million with complete tenanting of the off-airport retail centre. As at 31 March 2009 Wellington Airport revalued its assets resulting in a $64.2 million uplift, however, because of accounting rules a net cost of $7.3 million was recorded through the Profit and Loss Account and the balance was taken to reserves.

INFRATIL ENERGY AUSTRALIA GROUP delivered an increased EBITDAF contribution and substantial growth in its retail and generation activities. The positive result reflected larger customer acquisition costs and significant non-recurring gains from the Perth Energy unit. The gradual, State by State deregulation of the Australian energy market is progressing and IEA is well positioned to build on its sustainable base to forge a material energy business. The 120MW, A$120 million, Kwinana generation project is now under construction in Western Australia and is due for completion in mid 2010.

NEW ZEALAND BUS EBITDAF was slightly down relative to the prior year despite good increases in patronage in most of its markets. This was due to generally higher costs, in particular increased maintenance expenditure to improve service reliability. The public transport regulatory environment continues to challenge, but it is expected that the Public Transport Management Act will be amended this year and the restructure of Auckland governance should also streamline transport management in that region.

SNAPPER’S new ticket and payment system was warmly received in Wellington with almost 60,000 cards issued. Stages two and three of its development are well progressed so it can offer public transport users a wider range of payment choices (age related fares, passes, etc) with availability on more than just Go Wellington buses.

INFRATIL AIRPORTS EUROPE recorded an EBITDAF loss of $19 million against a profit of $1 million in the prior year. European air transport (passenger and freight) has been badly impacted by the recession. IAE’s airports handled 35% less freight and 5% fewer passengers than the previous year and this has required aggressive cost management and substantial staff reductions. Infratil has also renegotiated its agreement with Lubeck City to enable it to sell its stake in that Airport to the City for approximately $64 million in October 2009. In the meantime, debate rages about London’s airport capacity, with Kent International Airport being identified as a future option given its location and the development of high-speed rail links from Kent to London.

OTHER INVESTMENTS, Auckland Airport and Energy Developments fared poorly in the share market over the year giving rise to a substantial non-cash impairment charge at year-end. Auckland has largely been a victim of the overall weak equity market although in the short term, the Airport’s excellent new management team will have difficulty limiting pressure on passenger numbers . Energy Developments has had another difficult year. A lengthy strategic review was impacted by financial market conditions, and the Australian Government white paper on the introduction of the Carbon Pollution Reduction Scheme (”CPRS”) has created added uncertainty over some of Energy Development’s revenue streams.

CAPITAL & RISK MANAGEMENT

The world’s capital markets have experienced their most difficult period for two generations. For a time, failure of the system was a possibility and while the worst is now probably over it will be some time before stability is found and long-term consequences are recognised.

It is almost certain that less debt will be used in future, whether to fund household consumption or business investment, but we are also seeing some rationality return to assessments of what constitutes “acceptable debt”. Companies such as Infratil will continue to use a balance of debt and equity to fund investment, because robust cash flows make appropriate levels of debt sustainable.

As with any well managed company, the determination of “acceptable debt” is a judgement call based on assessment of market conditions and management of risk. Few New Zealand companies took the steps Infratil did to ensure its capital resources and liquidity would be robust enough to withstand a significant upheaval of the financial markets. Over 2006 to 2008, $416 million of permanent capital was raised and Infratil’s hedging of equity market risk realised a total gain of $45 million. The Company has come through this period of financial uncertainty with sufficient capital and liquidity to fund its investment activities and take advantage of future opportunities. Looking forward, Infratil will continue to be proactive and prudent in its capital management. Most crucially, the objective will be to maximise financial flexibility and to avoid the need to take expedient steps which could harm shareholder value.

CASHFLOW from operations adjusted for movements in working capital was $144 million ($134 million the previous year) and dividends of $103 million were paid. Total capital spending and movements in working capital amounted to an outflow of $332 million, with the balance of $291 million funded with $66 million of new equity and $225 million with cash balances or new borrowings.

CAPITAL MANAGEMENT included the receipt of $93 million from the second instalment on shares issued in the prior year and the proceeds of warrant exercise proceeds, and the expenditure of $27 million by Infratil and TrustPower on share buy-backs. The share buybacks reflect the availability of capital and a view of the value of these securities relative to other investment opportunities.

IFTWB 10 JULY 2009 WARRANTS. The Infratil Board is considering providing IFTWB warrant holders with an instalment payment option in addition to the current right to pay $1.62 and receive a fully paid ordinary share. If approved, this proposal would allow a warrant holder to make an initial instalment payment by 10 July and a final instalment payment at a later date. Infratil is still developing the mechanics but any new option would be intended to be value neutral to other warrant-holders and shareholders, while providing flexibility on payment terms. The Board are sympathetic to the feedback from investors and their advisers as to the need for a more investor friendly payment option. A final announcement on whether this will be undertaken, and the details, will be made in the near future.

DEBT FACILITIES of Infratil and wholly owned subsidiaries amounting to $368 million fell due over the period and were extended. Subsidiaries Wellington Airport and TrustPower each undertook $100 million medium term bond issues over the year and a A$80 million project finance debt facility was arranged for the Kwinana power station owned by Infratil’s non-wholly subsidiary, Perth Energy. As at 31 March 2009 Infratil and its wholly owned subsidiaries had unutilised bank lines and cash deposits amounting to $210 million.

FINANCIAL MARKET INSURANCE taken out by Infratil was closed out giving rise to a $45 million cash gain. The accounts show a gain of $12 million in the previous year and $33 million gain in the latest period. This arrangement reflected management and Board concern over the health of the global capital markets and willingness to take exceptional steps to reduce risks. In addition, management of foreign currency positions resulted in gains of $15.5 million.

ASSETS AND LIABILITIES OF INFRATIL are set out in the attached document.



BUSINESS CONDITIONS, PLANS, PROSPECTS

Financial markets have experienced a period of exceptional market upheaval and the final consequences are not yet clear. While financial markets are again functioning, it is likely to be several years before real economies fully mend and the effects of massive government intervention and spending are understood. Even in New Zealand, where financial sector problems have largely been restricted to finance companies and bank liquidity, the propensity for borrowing will be curbed and debt will generally cost more in the future.

In this context, Infratil will continue operating its businesses with the following objectives:

- Addressing under-performance. Not all of Infratil’s businesses and investments are providing a satisfactory return and they must be improved, or the capital extracted for better use elsewhere. Infratil will continue to rebalance it’s portfolio between long duration investments, capital growth, and current returns as volatility and the cost of capital rise.

- Capital preservation and financial flexibility. Postponing spending where opportunities are durable and only entering into new capital commitments where opportunities are both perishable and of exceptional quality.

- Proactive management of risks.

Infratil’s businesses, financing and risk management is undertaken with the over-riding goal of delivering superior risk-adjusted returns to shareholders. The target is 20% p.a. after tax over the long run. Following last year’s fall in share price Infratil is no longer exceeding that long-term target, but the Company has delivered 18% p.a. after tax over the 15 years since its establishment.

This out performance is based on being well positioned in the right sectors, having excellent management, investing to deliver compound growth, and scrupulous attention to risk management. Infratil’s ingredients of success remain intact.

Marko Bogoievski David Newman
Chief Executive Chairman

[Share Investor]

WAKEFIELD HEALTH LIMITED
Results for announcement to the market
Reporting Period Year ended 31 March 2009
Previous Reporting Period Year ended 31 March 2008

Amount (000’s) Percentage Change
Revenue from ordinary activities
$NZ 86,075 Up 10.3%
Profit from ordinary activities after tax attributable to security holder
$NZ 10,133 Up 41.4%
Net profit attributable to security holders
$NZ 10,133 Up 41.4%

Final Dividend Amount per security Imputed amount per security
$NZ 0.15 $0.074

Record Date 19 June 2009
Dividend Payment Date 26 June 2009

Comments See attached media release

NTA backing 31 March 2009 31 March 2008
Net tangible asset backing per ordinary share $4.86 $4.10


19 May 2009

WAKEFIELD HEALTH LIMITED POSTS
STRONG FULL YEAR RESULT

Wakefield Health Limited today reported an audited net profit after tax of $10.1 million for the year ended 31 March 2009 (2008 $7.2 million). This represented an increase of 27.9% on the comparable result from continuing operations in the previous year or 41.4% in absolute terms of net profit after tax performance.

The Company recorded revenue growth of 10.3% and with continued focus on cost efficiency had again been able to show improvement in operating margins. Revenue growth reflected both increases in in-patient numbers and a favourable case mix driving increased utilisation of hospital facilities. Solid growth was maintained across each of the Company’s three hospitals.

Wakefield Health’s Chairman, John Calder, said “We are delighted with the financial performance that has been achieved against a slowing economy, while continuing to maintain our programme of reinvestment in equipment and facilities”.

Mr Calder noted that elective surgery performed under contract from District Health Boards had provided an increased contribution to workloads in the 2009 financial year. However as had previously been noted, this work remained unpredictable both in regard to its extent and timing. The Company currently has contracted volumes in both the Hawkes Bay and Wellington through until 30 June 2009, but volumes beyond this remain uncertain at this stage.

The Company’s cash flow generation and retention remained strong enabling further reduction in the already conservative overall debt position. At 31 March 2009 the Company’s gearing (defined as net debt/net debt plus equity) was 6.0%, compared to 16.3% a year ago.

“Our project plans for the substantial redevelopment of the Bowen Hospital complex and the ongoing capital requirements of facility and equipment upgrades within our hospitals will see an increase in borrowing. However, the Company’s currently very conservative debt levels position it with significant capacity to invest in further developing its existing business and in pursuing new opportunities which offer attractive return prospects” Mr Calder said.

Wakefield Health’s Chief Executive, Andrew Blair, said “the Company recently commissioned its seventh operating theatre at Wakefield Hospital with fully integrated high definition digital capability, as well as retrofitting another theatre as a digital theatre. The project to replace patient management and financial IT systems across the Group continued to progress well, with Royston and Bowen Hospitals both recently going live on the new systems. The planned redevelopment of Bowen Hospital received resource consent and the process of finalising design and letting construction contracts for the first phase of this development is well underway, with construction currently expected to commence in the second quarter of the new financial year.”

This year’s result has been impacted by a non-cash charge to interest expense (as required by International Financial Reporting Standards) of $431k ($302k net of tax) relating to the “mark to market” adjustment for interest rates swaps held under the Company’s treasury management policy for loan debt. In addition, the Group now recognises the full value of contracted services in revenue, with the cost of sub-contracted services included in expenses, where previously the cost of sub-contracted services had been netted against revenue. The 2008 comparative figures have also been restated accordingly.

“The Company evaluated several acquisition and expansion prospects during the year” noted Mr Blair, “but none were able to meet the Board’s criteria for growing shareholder value. While we are taking a measured approach in the current economic environment, the Company continues to believe that further consolidation in the private surgical industry is both desirable and inevitable and we remain well positioned to respond to any opportunities which may emerge” Mr Blair said.

Dividend

The Directors have declared a final dividend of 15.0 cents per share, (fully imputed) bringing total distributions for the year to 25.0 cents. This represents an overall increase of 25% in the level of dividends paid when compared to last year.
The final dividend will be paid on 26 June 2009 to all shareholders on the register as at 19 June 2009.

Outlook

The New Zealand health sector is not immune to the fall-out from global economic events and uncertainties. However health sector fundamental demographics continue to remain favourable, with an aging population and increasing challenges for the public health system in meeting demand for elective surgery. The numbers of people with private medical insurance currently stands at close to 1.4 million. The growth in health insurance cover over recent years has helped relieve significant pressure on elective surgery in the public system. The private sector now funds around 60% of all elective surgery in New Zealand.
In the current environment there is a risk that self funded patient numbers will decline and also that those insured patients with a substantial excess in their policy will be less able to fund major surgeries.

The Group has experienced some slowing in patient numbers in recent times that may indicate some near-term weakness in the market. As set out above, the outlook for DHB contracting work is uncertain and the challenges currently faced by ACC may result in future changes in ACC funded workflows.
It is difficult to predict the extent to which these aspects may emerge and the likely impact however there is potential for a slowing in the rate of near term future revenue and earnings growth.

Ends
Issued by Wakefield Health Limited

[Share Investor]

ING Property Trust (the “Trust”) today announced an unaudited after tax loss of $63.1 million for the year ended 31 March 2009. The result includes independent property devaluations of $89.9 million driven by the softer global and domestic economy.

Michael Smith, Chairman of ING Property Trust Management Limited (the “Manager”), said “The Trust has had a satisfactory year, in terms of operating performance, in a challenging environment. The Trust’s diversified portfolio of good quality investments is well positioned, relative to the market. The Trust has been able to manage its debt ratios through the sale of 17 properties with an average sale price of $6.8 million. This illustrates an ability to transact in the area of the property market that remains active and liquid and provides demonstrable confidence to asset values. Encouragingly, sales activity since year end is at or above the current book values.”

The Trust’s core operating profit before interest and disposals was $77.5 million, 2.5% higher than the $75.6 million recorded in 2008. The after tax loss of $63.1 million compares to an after tax profit of $71.7 million in 2008. The value of the Trust’s property portfolio fell by $89.9 million in 2009, compared to a gain of $43.0 million in 2008.

As at 31 March 2009 the Trust’s total assets were $1,082 million and the Trust s debt was $429 million. The 39.6% debt-to-total-assets ratio remains below the Trust Deed limit of 50% and banking covenant of 45%. The Directors recently reduced the limit of the Trust’s banking facility from $600 million to $500 million as a result of its successful asset sales program. The ANZ facility has a renewal date of September 2010.

The Trust’s net asset backing has fallen to $1.09 (from $1.36 as at 31 March 2008) through declines in property valuations of $89.9 million and declines in interest rate swap valuations of $44.8 million.

Highlights
- A gross dividend of 8.0 cents per unit for the 12 months to 31 March 2009, meeting guidance
- In a difficult leasing environment the property portfolio occupancy at year-end was 98%
- A weighted average lease term of 4.2 years, providing strong rental security
- Net property income increased by $3.2 million during the year and assessments by the independent valuers show the portfolio is 7.9% under-rented providing potential for rental growth in the year ahead
- The most diversified property vehicle listed on the New Zealand stock exchange with a portfolio of 95 buildings valued at $1.1 billion with over 290 tenants. The average size of the properties is $11.1 million, which is well within the liquid end of the property market.
- Taking advantage of the continued demand for investment property assets under $20 million with the sale of 17 properties for $116.2 million
- The sale of the stake in ING Medical Properties Trust for $16.5 million, with the proceeds used to repay debt
- Active portfolio management and the remoulding of the property portfolio continued to ensure investors benefit from sound rental returns across the property cycle


More challenging environment
The property market remains challenged. The current key market factors include:
- The market for property under $20 million in value remains liquid.
- The retail sector has faced some challenges with a worsening consumer environment and these challenges are likely to continue during 2009.
- The commercial office sector is facing pressures from global credit issues together with recessionary environments both domestically and in the economies of our trading partners.
- The industrial sector continues to have low vacancies with little excess capacity. This will result in some rental growth still being available for assets that are well located.

Peter Mence, General Manager of the Manager said that “With current market activity, the Trust’s diversified property portfolio provides flexibility as the market for property in its size range remains relatively liquid. Through the sale of non-core assets, the Trust’s valuations have been shown to be realistic. The exposure to the retail sector has decreased during the year.”

Mr Mence added that “The portfolio enjoys strong occupancy levels, good tenant retention ratios and solid income figures. The low-risk approach to undeveloped assets has meant that the Trust holds very little land that is not income earning. Although economic challenges remain ahead, the Trust’s property portfolio is well positioned to meet these challenges.”

Strategy
The Trust's strategy while unchanged in the long-term has been revised in the more immediate term. The immediate strategy is focused in three key areas:
- Risk mitigation – both income and value
- Capital management
- Portfolio structuring for the future

Risk mitigation is important in an economic downturn. Active management of tenant relationships allows the early identification of any potential issues that may arise from a tenant’s business becoming financially stressed and consequently eroding the Trust’s income levels. Early awareness of any potential issue provides a better opportunity to achieve a result that is in the best interests of both the Trust and the tenant. Equally, with the values of all investments being questioned, it is important to ensure that the correct investment management decisions are made in order to preserve and enhance the value of individual properties in the portfolio.

Capital management, including debt reduction, is a significant strategy for the Trust. The Trust has an objective of reducing gearing levels to a conservative medium-term target gearing ratio of 35%. It is the intention of the Trust to reach this target by the realisation of property assets and the deferral of acquisition activity. Property sales of approximately $100 million, will be supplemented by the continuation of the dividend reinvestment plan. The long-term investment growth strategy of the Trust remains unchanged.

Sales
With the focus on debt levels, asset sales have been completed to reduce the Trust’s debt levels and to reduce the weighting to the retail sector. With the sale of 17 non-core properties for $116.2 million in the last six months of the financial year, the Trust has illustrated flexibility in being able to manage weightings and covenants by virtue of the lower average property value of the Trust’s property portfolio.

The Trust currently has seven properties subject to conditional sale contracts with an aggregate sales price of $46 million.

Portfolio management
The active management of the property portfolio and tenants continues to be a primary focus of the Trust’s property management team. With lower economic activity levels, management remains focused on tenant retention and mitigating risk levels in the portfolio. Tenant retention is assisted by the change in the nature of the demand where tenants are reluctant to commit to relocation expenditure.

The property portfolio maintains a high capacity utilisation level with occupancy as at 31 March 2009 of 98% and a weighted average lease term is 4.2 years. This is a sound result when recognition is given to the highly diversified nature of the buildings, tenants and locations. Due to the emphasis on active tenant and building management, 22 tenants have been retained, representing 32,000 sqm of space and $8.3 million of annual rental.

Over the financial year, 111 rental reviews have been completed which account for a total of $2.6 million of additional rental income. This equates to an annualised increase of 4.2%. While the portfolio is assessed as being under-rented by 7.9%.

Valuations
The revaluation, when combined with the interest rate swap revaluations and taxation implications has reduced the Trust's net asset backing per unit from $1.36 as at 31 March 2008 to $1.09 as at 31 March 2009. The valuation policy of the Manager is that independent registered valuers complete property valuations of each investment property of the Trust, in each financial year. The same valuer does not value a building for more than two consecutive years, resulting in a rotation of valuers on a regular basis.

The Trust's portfolio has a conservative average yield on contract rental of 8.5% and a yield on market income of 9.2%. The difference between the yield on contract income and the yield on market income is evidence of the contract rentals being assessed as being beneath the current market levels.

Distribution
The Trust will pay a final net distribution for the 2009 financial year of 1.941 cents per unit. Its components are:
- A fully imputed distribution of 1.314 cents per unit with imputation credits of 0.394 cents per unit attached; and
- An excluded distribution of 1.021 cents per unit.
The record date for the final distribution is 5 June 2009 and the payment date is 19 June 2009. In addition, the dividend reinvestment plan will continue with a discount for the quarter of 2.5%.

Looking ahead
There is little doubt that the market will continue to be challenging for the year ahead, however, the Trust is well positioned with a diversified property portfolio of good quality property in desirable locations. The income streams from the portfolio are diversified by use and by tenant.

Mr Smith said that “The strategy to reduce the Trust’s debt is appropriate given the current conditions, however, it will impact the Trust’s distribution levels. The Manager expects that the 2010 cash distribution will be in the order of 7.5 cents per unit.”

ENDS

For further information, contact:

Peter Mence, General Manager, ING Property Trust Management Limited,
Tel: 09 357 1811 or 021 748 839
Email: pmence@ingnz.com

Stuart Harrison, Chief Financial Officer, ING Property Trust Management Limited,
Tel: 09 362 2332 or 021 240 8681
Email: sharrison@ingnz.com

Michael Smith, Chairman, ING Property Trust Management Limited,
Tel: 027 299 1239

[Share Investor]

Today, Lion Nathan released its full Statutory Interim Results for the six months ended 31 March 2009, confirming results previously announced on 24 April 2009.

The Company recorded a Net Profit After Tax (NPAT) of $176 million, a 6.9% increase on the prior calendar period. Lion Nathan’s solid first half beer results enabled a positive revision to the FY09 NPAT guidance to $305 - $315 million (previously $300 - $315 million).

On 11 May 2009, the Company announced that it had signed an Implementation Agreement with Kirin Holdings Company Limited (“Kirin”) under which Kirin would acquire all of the outstanding shares in Lion Nathan that it does not already own. The NPAT guidance range excludes costs associated with this proposed transaction (“Kirin proposal”).

Some non-material differences exist between the Statutory Interim Results and the previously announced Preliminary Trading Results. Appendix 4 of the Interim Results provides details of these differences. The Statutory Interim Results supersede the Preliminary Trading Results and have been subject to audit review.

OVERVIEW

Lion Nathan’s solid first half beer results enabled a positive revision to the FY09 NPAT guidance to $305 - $315 million pre-significant items (previously $300 - $315 million). This NPAT guidance excludes costs associated with the Kirin proposal1.

First half results summary: (comparisons are to first half of FY08 unless noted otherwise)

Group net sales revenue up 5.7% to $1.185 billion
Group Earnings Before Interest and Tax (EBIT) increased by 8.4% to $307.0 million
Reported Net Profit After Tax (NPAT) of $176 million, up 6.9% (Underlying NPAT2 up 6.1% to $178 million)
Lion Nathan's robust business model continues to generate strong cash flows. The Company's funding position remains secure, with no debt maturities in the remainder of FY09
Very strong results from Lion Nathan Australia achieved through core brand growth, innovation, tap gains and Boag’s growth
EBIT up 14.8% to $280.3 million
Volume up 4.6%
Net sales revenue up 11.3%
New Zealand - maintaining position through innovation success
EBIT up 3.1% to NZ$56.5 million
Domestic beer volume in line with prior year
Growth of Steinlager Pure and Speight’s Summit resulted in strong mix gains
Wine – profitability adversely impacted by economic environment in US, UK and Australia and investment in US platform
EBIT (pre SGARA3) of $3.5 million, down 55.7%
Outlook:

The Company’s investment decisions over the past five years have built a stronger business which is positioned to deliver in FY09 and beyond.

The Company expects a higher growth rate in the second half due to innovation momentum, Boag’s growth accelerating, the timing of Easter and the cycling of the investment period of the prior year where fourth quarter marketing spend and the funding costs relating to the Boag’s acquisition had a significant impact on results.

[Share Investor]

Leading aged care and retirement village operator Ryman Healthcare today announced a realised profit of $53 million for the year, up 5% on the same period last year. Unrealised valuation gains lifted the reported profit under IFRS to $66 million.

Ryman shareholders will receive a 5% increase in the annual dividend - an increase which reflects the growth in realised profits. The final dividend of 2.85 cents per share will be paid on June 26, and the record date for entitlements is June 12.

“We are very pleased to have achieved growth in both our profits and dividends,” said chairman Dr David Kerr, “in a year which has been challenging for many businesses.”

The year was marked by the very successful opening of the Ernest Rutherford Retirement Village in Nelson, which is now home to over 200 residents and is continuing to expand. The initial stages of the new villages in New Plymouth and Whangarei are now open, and work is well advanced on what will become the Group’s 21st village in Orewa.

“Our operating cash flows this year were again very strong at $114 million. This has allowed us to increase our level of dividends, and fund the building of our new villages without the need to raise fresh capital or to increase debt.”

Demand for the company’s product continues to grow, with sales of retirement village units up 3% on last year with prices steady, and resthome and hospital occupancy at all time highs. This growth in demand reflects the burgeoning elderly population and underlines the growing need for the company’s services, irrespective of wider economic conditions.

“We are committed to our new village development programme, and to building 300 units and 100 care beds per annum. Presales for our new villages are strong, we have term bank facilities in place and we have sufficient land to build more than 1,700 new units or beds,” said Dr Kerr.

“We are therefore well placed to achieve growth in our realised profits and dividends in the year ahead.”

Ryman currently owns 21 villages nationwide, and plans to open two new villages each year. The villages are all designed, built and operated by Ryman. Since listing in 1999 the company has increased profits and dividends nine-fold without seeking any fresh capital from shareholders.

The company is a six times winner of Best Retirement Village in New Zealand, and serves over 4500 elderly New Zealanders.

Note: “Realised profit” excludes deferred tax charges and unrealised fair value movements in investment properties.

Ends

Media advisory: For further information, photos, interviews or comment please contact Ryman chairman Dr David Kerr on 021 362 403, or Ryman chief executive Simon Challies on 03 3664069 or 0274 968 762


CONSOLIDATED OPERATING STATEMENT FOR THE YEAR ENDED 31 MARCH 2009

Audited.

Current Year NZ$; Up/(Down) %; Previous Corresponding Year NZ$

REALISED PROFIT:
53,016,000; + 5%; 50,494,000

OPERATING REVENUE:

Trading Revenue:
91,620,000; + 22%; 74,838,000
Other Revenue
781,000; +11 %; 704,000
Total Operating Revenue
92,401,000; + 22%; 75,542,000

Fair value movement of investment properties:
57,198,000; (13)%; 65,498,000

TOTAL INCOME:
149,599,000; + 6%; 141,040,000

NET PROFIT BEFORE TAXATION:
69,440,000; (6%); 74,134,000

Less tax on operating profit:
3,372,000; + 120%; 1,532,000

NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS OF LISTED ISSUER:
66,068,000; (9%); 72,602,000

Earnings per share (basic and diluted):
13.3 cps; (9%); 14.6 cps

Final Dividend
2.85 cps; + 2%; 2.80 cps
Record Date: 12 June 2009
Date Payable: 26 June 2009
Imputation Tax Credit: No Imputation Credit

[Share Investor]

Kingfish Limited
Results for announcement to the market

Reporting Period 12 months to 31 March 2009
Previous Reporting Period 12 months to 31 March 2008

The financial statements attached to this report have been audited by PricewaterhouseCoopers and are not subject to a qualification. A copy of the Auditors’ Report applicable to the financial statements is attached to this announcement.

Current period NZ$000, Up/(Down) %, Previous corresponding Period NZ$000
Total net income from ordinary activities* (29,387), 15% (34,575)
Loss from ordinary activities after tax attributable to security holder (30,759), 16% (36,646)
Net loss attributable to security holders. (30,759), 16% (36,646)

Final Dividend
Kingfish will pay a 3.0cps fully imputed dividend.

Record Date 5 June 2009
Dividend Payment Date 19 June 2009

*The total net income from ordinary activities includes a $32.9 million reduction in fair value of investments held.

Audited NAV per share 31 March 2009: $0.92

DIRECTORS’ REPORT

Directors are disappointed to report a second consecutive year of reduction in Kingfish Limited’s Net Asset Value (NAV). The past eighteen months have been challenging for all share market investors as equity market lows were constantly re-tested. Our Manager, Fisher Funds, has continued to carefully monitor Kingfish’s investments and their belief in the soundness of our portfolio is reflected in their accompanying report. Turnover in Kingfish shares has been relatively low and we thank shareholders for their continued support as we await confirmation of signs of a return of confidence.

Performance
The Kingfish NAV, after adjusting for the 4.5 cents per share dividend paid in June 2008, fell 25% in the year to 31 March 2009. The fall-out from the international financial meltdown left few companies unscathed, with both the NZX Small Cap and Mid Cap indices declining 27% and 30% respectively over the twelve months. Kingfish’s share price also declined ending the year to 31 March at 71 cents, down 30%.
Kingfish recorded a net deficit of $30.8m for the year (2008: $36.6m deficit) including $29.5m (2008: $46.6m deficit) unrealised losses on investments. Operating expenses decreased 29% from the previous year, with approximately half of the savings achieved from reduced management fees. As in the 2008 year, Fisher Funds earned the minimum base management fee of 0.75% of the average value of gross assets under management, rather than the 1.25% payable if benchmark returns are met.

Dividend
The Board carefully considered the merits of paying a dividend this year in light of the current economic conditions. Our conclusion was that a distribution should be made to match the level of dividends received from portfolio companies during the year. Accordingly on 22 May 2009 we announced a three cents per share dividend in respect to the year ended 31 March 2009. The record date is 5 June 2009 at 5pm and payment is scheduled for 19 June 2009.
Since inception in 2004 Kingfish has declared and paid dividends totalling 18 cents per share. Your Board is keen to continue to deliver a regular income stream to shareholders, with the level being set in accordance with current circumstances.

Share buybacks
During the year we announced the continuation of the company’s share buyback programme until 31 October 2009. While recognising that each buyback below NAV increases the asset backing of remaining shares, your Board carefully monitors the programme’s implementation. We take into account the discount between the share price and NAV, market trading volumes and share price trends, and our Manager’s assessment of investment alternatives. Shares purchased are initially held as Treasury Stock and shown as a deduction from Shareholders’ Equity. Treasury stock is available to be re-issued including in respect of the company’s dividend reinvestment plan. At 31 March 2009, approximately two million shares were held as Treasury Stock at an average net cost of 42 cents per share. The Board acknowledges that the share buyback programme may have the effect of increasing Kingfish’s share price and closing the share price discount to NAV but such an effect may be short term. Importantly, by buying back shares a clear message is sent that in the Board’s opinion the current share price undervalues the company.

Renewal of Management Agreement
Earlier this year, your independent Directors reviewed the Manager’s performance of “Management Services” as defined in the Management Agreement with Fisher Funds. The Agreement was for an initial term of five years from 31 March 2004 and provided for a continuation for further five year terms. The company was entitled to decline to renew if the Board was dissatisfied with the Manager’s performance of “Management Services” as defined in the agreement. The independent Directors considered the comprehensive obligations of the Management Services clauses and concluded that while short-term investment performance had been disappointing as with other NZ equity funds, Fisher Funds had met all its Agreement obligations and the Agreement was renewed in accordance with the terms of the Agreement for a further five years to 31 March 2014.

Manager’s Fees
Details of the basis upon which management and performance fees are payable to Fisher Funds are shown in Notes 9 and 12 to the Financial Statements. No future performance fee is payable until NAV exceeds $1.68 - the level at which a performance fee was last paid. It is a big hurdle, however Fisher Funds is focused on its investment approach once again delivering over time.

Investor Relations
We continue to strive for ways to communicate with you more effectively and are committed to updating you regularly on what has been happening in the company. Recently we re-developed the Kingfish website to make it easier for you to find the information you need quickly. Our weekly and monthly NAV’s are posted on the home page after each NZX announcement and every three months shareholders either receive an Update newsletter on the quarter, or the annual or interim report.

This year the Annual Shareholders Meeting will be held on 24 July and we look forward to the excellent attendance that we have had previously. Our corporate office welcomes your e-mail and phone call enquiries and is your first port of call should you have any matters that you wish to discuss.

Investment Objective & Philosophy
Kingfish provides a single investment vehicle through which investors may gain access to a portfolio of smaller New Zealand companies. The investment philosophy of Fisher Funds is to thoroughly research and understand each investee company’s business, know its management and Board, and identify its sustainable competitive advantage. From this rigorous analysis Fisher Funds has currently selected companies that have a proven track record of growth, with the view to holding them for the longer term.

Looking ahead
Since balance date, we have witnessed signs of renewed optimism in the equity markets and at the date of this report Kingfish’s NAV and share price have lifted. Whether or not this foreshadows better things to come we cannot be sure. While short-term signs of optimism are encouraging, it is the long-term performance of your companies that we hope will eventually be recognised by a recovering share market.

On behalf of the Board,


Rob Challinor
Chairman
Kingfish Limited
22 May 2009

Relative Performance 31 March 2009 Since Inception 12 months
Kingfish NAV(including 15cps dividends paid) 11.08% -25.26%
90 Day Bank Bill Index (NZD) +7% 104.08% 15.38%
NZSX Small Cap Index (NZSCI) -12.76% -27.44%
NZSX Mid Cap Index (NZSEMC) -8.58% -29.92%
NZSX 50 Gross Index (NZ50G) -0.10% -25.36%

Year Ended 31/03/09 Year Ended 31/03/08 Year Change
Net Asset Value* ($) 0.92 1.31 -29.7%
Share Price ($) 0.71 1.02 -30.4%

* Audited. Not adjusted for dividends paid

MANAGER’S REPORT

“This time, like all times, is a very good one, if we but know what to do with it.”
Ralph Waldo Emerson

Even though the function of an annual report is to summarise the events of the financial year, there seems little value in applying our knowledge and experience to the twelve months that unravelled to 31 March 2009. The year was what it was, a continuation of an economic and share market crisis that began in October 2007. We talked in our September interim report about the investment climate which featured unprecedented volatility, and indiscriminate selling of all assets considered risky. We also said that traditional stock picking and portfolio management techniques mattered little, as this has been a crisis of confidence as much as anything else.

It remains important to focus on the achievements of the companies owned within the Kingfish portfolio - actually just surviving and remaining profitable has been an achievement over the past year. The short summary is that your portfolio companies performed well operationally in the financial year. But in saying that, we acknowledge that the profitability and progress of your companies was not what the March 2009 year was about and it was not reflected in their share price performances. So we can appreciate how you are likely to be feeling as you look at the Kingfish share price and its net asset value.

It is unfortunate that many of the more sensible rules of investing have been so overused as to now seem trite. The time-tested investment principles that have worked through different economic, political and market environments are really the only guidelines that we can rely on these days - everything else has been turned on its head and we are in uncharted territory. The best of these principles centre on choosing good investments, having a diversified portfolio, maintaining a long-term focus and applying a disciplined consistent approach irrespective of market conditions. We have adhered to these principles in the management of the Kingfish portfolio and while our efforts have not been rewarded in the past year, we are confident that they will be in the future. We have chosen good investments and indeed the quality of the management teams has been accentuated in these difficult times – nothing like watching your revenue fall and not knowing when it will recover to sharpen your business skills! The portfolio has been diversified across a number of sectors and we actively altered the sector exposure during the year to make the portfolio more defensive (lower exposure to consumer-oriented businesses and higher exposure to stable sectors such as healthcare). Our long term focus has allowed us to remain calm as we know that each of the Kingfish companies is very well placed for future profitable growth, even though operating conditions might be difficult right now. We do not believe that our optimism for future performance is misplaced, and the share price performance of a number of the Kingfish portfolio stocks in April provided a glimpse of the prospective performance of undervalued quality companies when investor confidence improves.
The bounce in equity markets around the world since mid-March 2009 is welcome and was overdue in our opinion. Whilst the bounce has been predicated on world economies not deteriorating further (as opposed to getting better), there are hopeful signs that markets are at least stabilising.

The New Zealand Share Market Environment
Four quarters of negative GDP growth since December 2007 set the scene for a difficult domestic share market environment. Despite the election of a new Government, tax cuts, ongoing reductions in the official cash rate, a lower currency and increased infrastructure spending to stimulate domestic growth, investor sentiment remains fragile.

Whilst world equity market volatility continued unabated during calendar 2008, the new year brought a palpable change in investor sentiment. It would be vastly overstating things to say that investors began 2009 with renewed optimism, but as the new year has progressed there have definitely been signs of improvement; in economies, in businesses and in the mood of investors. The term “green shoots” is in danger of becoming hackneyed but it is a good descriptor for the first three months of 2009 as things generally became less bad – not good, but less bad.

For the 2009 year to date, the focus has changed from rear view mirror to windscreen - more about fixing problems and minimising the effects of recession than about who is to blame and what went wrong. Markets do not operate well with uncertainty and much of the fear that prevailed during 2008 was centred on the possibility of deflation, or a prolonged period of falling prices (which is disastrous for share markets). With the implementation of concerted policy measures, it has become apparent that deflation will likely be avoided, leaving “just” a recession to worry about. Recessions are not great, but they can be understood and managed.

Since the end of March, the new equity floodgates have opened coinciding with the bounce in world equity markets. New capital raisings from New Zealand listed companies including Fletcher Building, Sky City Entertainment, Nuplex, Kiwi Income Property Trust and also from two from the Kingfish portfolio, Metlifecare and Freightways, have exceeded $1 billion. This has already exceeded the equity raised in the whole of calendar 2008. Other companies are also likely to access the equity market during 2009 in our opinion, and we are supportive of companies raising capital if it leaves them well positioned to grow their businesses. We are less supportive of companies that need to raise capital in order to survive, but this is not a concern for the Kingfish companies.

Portfolio Highlights
As stated previously, we believe that the underlying business models of the Kingfish portfolio companies remain resilient, they have sustainable ‘moats’ around their businesses and have relatively low debt gearing. We also believe that the portfolio metrics of the Kingfish portfolio remain very attractive. The current one year forward weighted P/E for the portfolio is around 10x, with a net dividend yield of around 5% and forecast earnings growth of 19% (based on consensus analysts’ earnings forecasts). The portfolio has modest levels of debt gearing with net debt / EBITDA of 1.8x and interest cover of 7.5x. Two companies (NZX and Opus International Consulting) have net cash. With these favourable fundamentals, the Kingfish portfolio is comfortably positioned for the year ahead.

Abano Healthcare entered the portfolio in May 2008, although it remains a relatively small investment for Kingfish. We like the sector and Abano’s focus on private sector revenues particularly in audiology and dental. Abano now has a good track record of working alongside clinicians to mutual advantage. The company recently updated profit guidance for the year ended May 2009 of around 20% growth in net earnings. The Abano Healthcare share price has easily outperformed the broader market since entering the portfolio.

Wakefield Health also made a welcome addition to the portfolio in June 2008 and has significantly outperformed the broader market since then. The demand for elective and non-urgent surgery continues to exceed the capacity of centrally funded health services to deliver it. Wakefield Health is well placed to deliver these services at its three private hospitals and is looking to expand given its conservative balance sheet. Net profit for the half year ended 30 September 2008 was up a creditable 36%.

Our retailers, Pumpkin Patch and Michael Hill International, have had tough years as discretionary spending has virtually dried up. We reduced our holdings in both companies early in the financial year, helping fund our new investments in Abano Healthcare and Wakefield Health. Both retailers’ Australian operations have performed significantly better than their New Zealand ones, but this has not been enough to prevent an overall fall in earnings. Pumpkin Patch expanded into the USA at, with the benefit of hindsight, precisely the wrong time and while we expect losses to abate, they will continue for a while yet. Michael Hill International will also incur losses in the US, albeit off a low base. For both, the long-term earnings potential easily justifies a position in the Kingfish portfolio.

Although some negative commentators question the long term viability of the New Zealand stock market, and in spite of a decline in trading activity, NZX has been an exceptional performer. The company has successfully diversified its earnings stream away from the operation of the New Zealand share market, and has had phenomenal success with its greenfield emission trading registry TZ1. At the time of the sale of TZ1 in January 2009, the base case sale price of ~$66m represented over half of the market capitalisation of NZX. To put this in perspective, the TZ1 business has been developed by NZX over just 18 months at a cost of only $2.5m. Considerable upside still exists from this investment if TZ1 can achieve its ‘earn-out’. NZX achieved 17% growth in net earnings in 2008, with 1Q 2009 net earnings up 40% - a standout performer against the trend in other regional stock exchanges.

In the retirement village sector, our two investments have had polar performances. Metlifecare has been a disappointing performer in 2008 and was our worst performing single investment for the year. After expanding too rapidly it got caught in the general property slowdown, and was potentially going to trip its banking covenants, although the underlying business remained resilient. The company raised $58m in a rights issue and we participated to maintain our shareholding. At the time of writing, the share price has risen to almost double the $1.08 per share cash issue price. However, the current share price still only represents around half the diluted asset backing, which under International Financial Reporting Standards is effectively independently valued. Conversely, Ryman Healthcare continues to prosper, with improved conversion of sales in its newer villages, strong cash flow and consistent development margins. Ryman remains conservatively geared and is now looking at future landbanking opportunities now that land values have fallen significantly. Ryman Healthcare remains our largest investment in the Kingfish portfolio, a position we remain very comfortable with.

Delegat’s wine export growth has continued unabated, both in volume and value terms. First half 2009 earnings were up a massive 146%, driven by strong demand for its Oyster Bay branded products. Oyster Bay is the biggest selling white wine in Australia, and the number one selling New Zealand wine brand in the UK and Canada. It will have a delayed but significant benefit to future earnings from the fall in the NZ$. Wine, or at least well–branded premium wine such as Oyster Bay, has proven relatively resilient to the economic slowdown. Consumers clearly choose to retain some creature comforts in a recession!

Freightways and Mainfreight have both generally performed well in the economic slowdown. Freightways profitability has been very resilient, assisted by its newly developed Information Management division, which is performing well. Mainfreight has arguably been more impacted by the economic slowdown, but its strong market share and competent management have negated the slowing economies.

We exited our small investment in Sealegs during the year. In our opinion, Sealegs has been disappointing as it has failed to successfully commercialise its innovative but specialised launching and retrieval boat.

Outlook
We don’t give much credence to those making statements about the future, because the reality is that nobody can know with any certainty what the next month holds, let alone the next year. We don’t expect you to give us any credence for our predictions about the likely direction of the share market either (which is why we don’t make them!). But we do believe that when we talk about the companies in which we invest, we have some credibility because we have made it our business to know these businesses better than any other investor. It is our belief that the companies owned within the Kingfish portfolio are better placed than most to use their competitive strengths to grow market share, grow profits and therefore attract investor support in the coming years. Their share prices might lag, might be volatile and from time to time, might get completely out of kilter with the fundamental value of the business but, in time, their achievements will be reflected in a higher share price.

Carmel Fisher
Managing Director
FISHER FUNDS MANAGEMENT LTD
22 May 2009


For Enquiries, please contact Carmel Fisher, Director – Kingfish Limited, Director – Fisher Funds Management Limited on (09) 489 7094 or Rob Challinor, Chairman – Kingfish Limited on (09) 489 7094.

The Kingfish website, http://www.kingfishlimited.co.nz contains up to date company information, copies of Shareholder report’s and recent NZX announcements. The 31 March 2009 Annual Report to shareholders will be sent in early June 2009 and will be available on the website at that time

[Share Investor]

FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED
Results for announcement to the market
Reporting Period 12 months to 31 March 2009
Previous Reporting Period 12 months to 31 March 2008

Amount (000s) Percentage change
Operating revenue from ordinary activities $458,717 +28%
Earnings before interest and tax $102,391 +76%
Net profit attributable to shareholders $62,233 +76%

Gross amount per share Imputed amount per share
Final Dividend 7.0 cents 3.0 cents

Record Date 19 June 2009
Dividend Payment Date 6 July 2009

FISHER & PAYKEL HEALTHCARE REPORTS 76% INCREASE IN PROFIT
Auckland, New Zealand, 26 May 2009 - Fisher & Paykel Healthcare Corporation Limited (NZSX:FPH, ASX:FPH) announced today that its operating profit for the year ended 31 March 2009 grew 76%, compared to the prior year, to NZ$102.4 million. This was a result of very strong growth in its respiratory and acute care product group, new product introductions in its obstructive sleep apnea (OSA) range and favourable exchange rate movements. Profit after tax also grew 76% to NZ$62.2 million.

Operating revenue
Operating revenue for the year ended 31 March 2009 increased 28% over the prior year to a record NZ$458.7 million, and in US dollar terms, grew 10% to US$299.3 million.

Respiratory and acute care product group operating revenue increased by 34% to NZ$244.5 million and OSA product group operating revenue increased by 23% to NZ$202.6 million.

“Demand for our respiratory humidifier systems was exceptionally strong, assisted by substantial orders for hospital Group Purchasing Organisation (GPO) contracts in the United States and delivery of respiratory consumable backorders in the first half.

In the expanding OSA treatment market, constant currency revenue growth for total mask and flow generator operating revenue increased to 12% in the second half as we began to gain share with our new premium CPAP flow generators and masks”, commented Fisher & Paykel Healthcare’s CEO, Mr Michael Daniell.

“We continue to make very encouraging progress in developing new clinical applications for our technologies beyond our traditional invasive ventilation and OSA markets. These include patients requiring non-invasive ventilation, oxygen therapy, humidity therapy and laparoscopic surgery. These applications generated constant currency revenue growth of 55% over the prior year and contributed a quarter of our respiratory and acute care consumables revenue.”

Dividend
The company’s directors have approved a final dividend for the financial year ended 31 March 2009 of 7.0 NZ cents per ordinary share (2008: 7.0 cents), carrying full imputation credit. Non-resident shareholders will receive a supplementary dividend of 1.2353 NZ cents per share. The final dividend will be paid on 6 July 2009, with a record date of 19 June, and an ex-dividend date of 15 June for the ASX and 22 June for the NZSX.

The company will implement a dividend reinvestment plan under which shareholders may choose to reinvest all or part of their cash dividends in additional ordinary shares.

Research & Development, SG&A
Research and development expenses increased by 18% over the prior year to NZ$28.3 million, representing 6.2% of operating revenue. The company continued to expand its product and process research and development activities and current new product projects include flow generators, masks and additional respiratory care consumables. For the 2009 financial year the company has accrued in other income a one-time R&D tax credit of NZ$3 million.

Selling, general and administrative (SG&A) expenses grew 22% to NZ$118.9 million, or 13% in constant currency terms, as the company continued to expand its operations and its sales teams in North America, Europe, Asia/Pacific and South America.


Foreign Exchange Hedging
The company has in place a mix of foreign exchange contracts and collar options, up to five years forward, with a face value of approximately NZ$610 million. These instruments are at average rates of approximately 0.55 US dollars and 0.44 Euros to the New Zealand dollar for the 2010 financial year and are to protect the company from exchange rate volatility.

Outlook
“This year we intend to invest significantly in expanding our sales and distribution operations, with plans to establish distribution and clinical sales support centres in four additional countries, including Japan. We will be expanding both our R&D activities and our manufacturing capacity in New Zealand, and will also establish an offshore manufacturing facility,” concluded Mr Daniell.

For the 2010 financial year the company expects to continue to achieve robust revenue growth and estimates that, at an average NZD:USD exchange rate of 0.60, it will achieve operating revenue of approximately NZ$540 million and profit after tax growth of about 25% to approximately NZ$75 million to NZ$80 million.

Related attachments

FPH FY09 Audit Report.pdf

FPH NZX Appendix 7.pdf

FPH - FY2009 Full Year release.pdf

[Share Investor]

Name of Listed Issuer: SANFORD LIMITED
For Half Year Ended: 31 March 2009
Unaudited: NZ$M (millions)

CONSOLIDATED INTERIM INCOME STATEMENT
Revenue: $228.441m ($218.103m) 4.7%
PROFIT BEFORE INCOME TAX: $37.845m ($40.614m)(6.8%)
Less tax: $11.790m ($5.255m) 124.4%
PROFIT AFTER TAX BUT BEFORE MINORITY INTERESTS: $26.055m ($35.359m) (26.3%)
Minority Interests: Loss $0.070m (Loss $0.066m)
NET SURPLUS ATTRIBUTABLE TO EQUITY HOLDERS OF THE GROUP: $25.985m ($35.293m) (26.4%)
EARNINGS PER SHARE: 27.8cps (37.8cps)
Interim Dividend: 9cps (9cps)
Record Date: 12 June 2009
Payment Date: 17 June 2009
Imputation tax credit on interim dividend: 4.4328cps

Comments on Sanford Limited Interim Result 2009

OVERVIEW

Operating earnings (EBITDA) increased from $35.5m last year to $43.6m this year with tax paid profit on operating earnings up from $14.7m last year to $27.1m this year. Overall profit for the six months totalled $26.0m, behind the $35.3m of the previous year that included one-off items (net gain of $20.6m last year versus an impairment charge (High Liner Foods Inc) of $1.1m this year). In addition foreign exchange gains improved from a loss of $2.1m last year to a gain of $6.5m this year as the New Zealand dollar declined.

The increase in underlying earnings for the business resulted from improved contributions from deepwater and aquaculture operations more than offsetting declines in returns from inshore and international fishing. In the early part of the period we benefited from strong market demand and prices coupled with a declining New Zealand dollar. From October that slowed down as international markets reacted to the global financial crisis. While markets are slowly returning to normal there has been a build up in inventory levels for some species while markets find a new equilibrium. Foreign exchange gains were earned in the first three months as the New Zealand dollar declined from record highs. The average US currency conversion rate during the period was US 55.5 cents compared to US 77.2 cents the previous year. In the early part of the year we commenced taking foreign currency hedges for United States dollars and Japanese yen for approximately 30% of estimated receipts over the next 12 months.

Markets for most of our main species declined during the period. Graphs showing some of the price declines are shown in this report. The three most significant price declines that impacted our results were ling fillets, half-shell mussels and skipjack tuna.

Fuel costs were the same in the first six months of the year as compared with the first half of last year.

Aquaculture sales and profits continued to improve following the significant gains in the second six months last year. However towards the end of the period half-shell mussel prices, particularly in the United States fell by almost 40% from their peak led predominantly by weak selling out of New Zealand. Salmon stocks at the end of the period from last year’s harvest were higher than normal but have all been sold since.

The more rigorous testing regime and the progressive upgrade of the critical processing environments in our shellfish plants have meant that we have been able to ship product to market without any of the product recall issues of last year.

Skipjack tuna catches in the Pacific were lower than last year and in New Zealand we had a poor skipjack season at less than half the previous year. Market prices for skipjack tuna also declined over the period reducing returns from this species.

Catches in the deepwater were generally ahead of expectations. Hoki catch rates continue to improve as the resource recovers and early season squid catches have been reasonable. The freezer longliners had another difficult year in the Ross Sea targeting toothfish as total catches by the fleet reached the allowable limit earlier than prior seasons. The San Aspiring has again been approved to catch toothfish in the South Georgia area this year.

With results continuing to improve from our investment in Weihai Dong Won Food Company Limited (WDWF) operations in Weihai, China, we recently concluded arrangements to increase our shareholding to 50% and turn the operation into a 50/50 joint venture with Dong Won Fisheries Company Limited of Korea. Volumes being processed continue to improve and the negative perceptional impact on product processed in China is slowly diminishing.

IMPAIRMENT CHARGE

In the current period an impairment charge of $1.1m has been taken to align the value of our investment in High Liner Foods Inc with the market value of those shares as recorded on 31 March 2009.

For the comparable period last year we recorded a $27.2m profit mainly from the disposal of our shares in Fisheries Products International Limited partially offset by various impairment charges totalling $6.6m.

MARKETS AND PRICING

With the international economic crisis seafood prices mostly declined over the first six months of this year but coming off record highs in the previous six months. In most cases the price declines were more than offset by the decline in the New Zealand dollar. As a result net margins for many species were well ahead of last year. Stock levels of some species increased over the six months as a result of banking issues in some markets that made trading difficult and credit control imperative. The selling prices for half-shell mussels in the United States have dropped markedly with a flow on effect in other markets as well. In our view and experience they are now selling for less than the real market potential and are being held down by weak selling out of New Zealand.

Consistent with past reporting the following species graphs depict the relative movement in selling prices in the market place.

The most dramatic price changes are in ling, half-shell mussels and skipjack tuna with only minimal effect on hoki fillet blocks and smooth dory and price increases in respect of orange roughy.

INSHORE OPERATIONS

Auckland
Auckland’s processing and packing for local supermarkets has continued to grow and is helping to eliminate dependence on reprocessing during the normal seasonal fluctuations associated with inshore fisheries. New processing plant technology installed in January 2009 is already assisting in minimising labour costs. Further investments in technology are planned over the next six months. A slow down in demand for some species is affecting profitability.

Auckland Fish Market
Auction sales declined in the second quarter but have since returned to normal levels and the business is expected to achieve its targeted returns. Demand for Seafood School corporate classes weakened as a result of a more cost conscious trading environment. The Big Picture attraction at the Auckland Fish Market started trading in late December. This joint venture is a wine tasting experience; sales are slowly increasing as awareness grows but are hampered by the difficult trading environment and downturn in tourist numbers.

Tauranga
Poor blue mackerel and skipjack tuna catches have resulted in lower revenue and profitability in Tauranga. New processing technology installed and commissioned over the next six months will increase processing efficiency. The Mount Maunganui-based Export Cold Storage business has performed ahead of expectations reflecting the increasing demand for storage as a result of a slow down in demand for some seafood and other frozen export products.

Timaru
While catches of barracouta have improved, inshore squid catches have been below expectations. The factory continues to benefit from the strong demand and improved prices for orange roughy. The fishmeal plant is performing above expectations due to the steady demand for fish oil and the fishmeal price remains strong.

The San Won coldstore has had a strong last quarter due to the lack of cold storage capacity around the country as a result of the general slow down in demand for some frozen products.

DEEPWATER OPERATIONS

Freezer Trawlers
The 64-metre freezer vessels continue to perform well with continuing improved catch rates in the hoki fishery likely to result in a quota increase later this year. All three trawlers are switching to a heavier grade, lower cost fuel which will result in lower fuel costs during the second half of the year. The orange roughy and oreo dory fisheries on the Chatham Rise continue to produce as expected and are harvested under the “One Fleet” co-operative catching arrangement, which is proving effective.

Freezer Longliners
Ling fishing by the San Aotea II in the early and latter part of the period has been slower than previous years. Unfortunately this vessel and the San Aspiring had lower catches of toothfish in the Ross Sea as the fishery was closed (prematurely) with the total catch reportedly taken. The San Aspiring has moved to the South Georgia area, fishing for toothfish.

Scampi Freezer Vessels
The scampi fleet configuration was changed during the period with the retirement of the two oldest vessels and the acquisition of one newer vessel. Markets remain steady for scampi, with the weaker exchange rate improving returns.

Charter Vessels
The four Korean charter vessels have improved their catching performance this year.
The transition to the new Ministry of Fisheries and Maritime New Zealand requirements for foreign charter vessels has been successfully achieved. Financial returns continue to be steady and in line with expectations.

Quota Trading
Income from quota trading is consistent with previous periods and continues to make a useful contribution to income.

AQUACULTURE OPERATIONS

Aquaculture contributions increased over the previous year. Good market demand and strong prices for mussels in the first quarter and tight control of costs have been the main contributors.

Pacific Oysters - Kaeo
Oyster production was below expectations for the period but we expect to pick up this shortfall in the new season starting June. Market demand and price outlook is steady for the new season production. We will commence harvesting some oysters grown in bags rather than sticks in the coming period; we expect they will produce better quality oysters.

GreenshellTM Mussels - Coromandel, Havelock and Bluff
Production volumes at Coromandel and Bluff are ahead of last year with Havelock behind due to unseasonal rainfall closures and poor mussel condition during the first quarter. All processing plants have been operating two shifts at full capacity. Market prices have been strong in the first quarter but have deteriorated significantly as the year has progressed which is partly due to the global economic downturn and partly due to industry activity in the market place.

An additional vessel has been purchased to assist with the increased production from our Coromandel farms and we have also invested in new farming technology that will improve the productivity of our farming operations in this region.

Construction of the factory expansion at North Island Mussel Processors (NIMPL) joint venture in Tauranga is now well underway and proceeding to plan with equipment installation due in October and commissioning due to commence in December 2009.

King Salmon - Stewart Island and Bluff
Salmon production levels are close to expectation and well ahead of last year. During the first six months salmon stocks increased as the market has continued to be difficult, with sales volume and price pressures from salmon harvested early in Chile due to disease problems. This situation has now eased and sales and markets are improving, particularly in Asia.

The farm upgrade for the second (Kiwa) site in Big Glory Bay is behind schedule but will be complete and fully operational by the end of May. Performance of the new automated feeding technology on the first (47 South) site is exceeding expectations.

Bluff Oysters
Following on from our purchase of the Jones Group Limited assets the results from our first season in the Bluff oyster fishery are pleasing. The season started on 1 March and catches, quality and market returns have exceeded expectations to date.

INTERNATIONAL FISHING OPERATIONS

Australia
The Australian business had a lower level of sales than anticipated for the six months and this environment looks likely to continue for the balance of the year with all sectors of trading affected. The fresh fish trawler has performed above expectations and should continue at this level for the rest of the year. A new Melbourne Consignment Market facility is in the final stages of planning and construction will commence in the near future. There have been some changes in quotas made by the Government, with the overall result being a slight reduction in our holdings. Some opportunities for business growth are being pursued.

Pacific Tuna Vessels
The three Pacific tuna vessels made a reasonably positive contribution for the six months and their overall performance was in line with expectations. The operating climate is more challenging in comparison to the first six months of last year with catches being down and prices having declined around 50% since the start of the year. Fuel prices also fell about 50% over the six months which helped to mitigate the price decline and thereby safeguard a creditable contribution. The second six months is likely to see a continued steady performance of the vessels in what is expected to remain a tight operating climate.

OVERSEAS INVESTMENTS

High Liner Foods Inc (TSX:HLF)
High Liner Foods Inc recently announced significantly improved results for the first three months of this calendar year although in the current difficult financial environment this improvement is not always recognised in equity markets. In the current period an impairment charge of $1.1m has been taken to align the value of our holding in High Liner shares with the market value of those shares as recorded on 31 March 2009.

Weihai Dong Won Food Company Limited, China (50% owned from 1 May 2009)
With results continuing to improve from our investment in Weihai Dong Won Food Company Limited (WDWF) operations in Weihai, China, we recently concluded arrangements to increase our stake to 50% and turn the operation into a 50/50 joint venture with Dong Won Fisheries Company Limited of Korea. Volumes being processed continue to improve and the negative perceptional impact on product processed in China is slowly diminishing.

CONSOLIDATED BALANCE SHEET

Sanford ratio of shareholders equity in proportion to total assets continues at 76%. The working capital ratio has declined from 2.7:1 at the end of the half last year to 2.1:1 this year mainly as a result of increased inventory levels. Inventory levels are up from $46.8m a year ago and $41.4m six months ago to $55.6m at the end of the period. The increased inventory levels reflect the difficult and uncertain market conditions during the period which have now eased somewhat. Inventory is expected to return to a more normal level by the end of the financial year.

CAPITAL EXPENDITURE

During the period the Jones Group Limited assets (principally quota) were acquired for $19.3m. In addition capital expenditure for the period totalled $11m of which $7m was new technology processing installed in the inshore plants, $3m on an additional scampi vessel and other deepwater vessel improvements and $1m on additional aquaculture equipment. Since the end of the period we have purchased a recently built, second hand inshore vessel from the Faroe Islands for $3m.

SUSTAINABLE DEVELOPMENT

We continue to drive forward on our sustainable development to underpin our Sustainable Seafood motto. International pressure continues to build from consumers to ensure that the seafood they consume comes from sustainable sources. We fully support the recently announced move to seek Marine Stewardship Certification (MSC) of 5 additional fisheries in New Zealand. The hake, ling and southern blue whiting fisheries are relatively small compared with the hoki fishery but they are none-the-less important whitefish fisheries that will allow us to sell a wider range of MSC certified products. The certification of the Ross Sea toothfish fishery is due to be completed in the near future which will mean that both our Ross Sea and South Georgia toothfish is MSC certified. We continue to direct our charitable support to particular organisations and during the period our Australian subsidiary donated A$25,000 to the Victoria bushfire appeal.

OUTLOOK FOR THE SECOND SIX MONTHS TO 30 SEPTEMBER 2009

There is some prospect of international trading conditions in the second-half of the financial year being slightly easier but with the current strength of the New Zealand dollar it is still not possible or indeed wise for Sanford to project a year-end profit result. We continue to have a first rate team in place with a well balanced portfolio of interests in various fisheries. We see those operations continuing throughout the remainder of the year without the need for any downsizing and so our primary focus will be on continuing to build and improve the quality of our assets and operations to achieve future growth. We will continue to seek improved efficiencies in all facets of our business activity through both technological development and continuous and rigorous testing of our business model and continuing our focus on managing our foreign exchange and debt levels to minimise risk and to safeguard the interests of all shareholders.


B S Cole E F Barratt
Chairman Managing Director

27 May 2009


INFORMATION REQUIRED BY NZX

SANFORD LIMITED
Unaudited results for announcement to the market
Reporting Period 6 months to 31 March 2009
Previous Reporting Period 6 months to 31 March 2008
Amount Percentage change
Revenue from ordinary activities $NZ 228.4m 4.7%
Profit (loss) from ordinary activities after tax attributable to security holders. $NZ 26.0m (26.4%)
Net profit (loss) attributable to security holders $NZ 26.0m (26.4%)
Interim Dividend Amount per security Imputed amount per security
9 cents per share 4.4328 cents per share
Record Date 12 June 2009
Dividend Payment Date 17 June 2009

[Share Investor]

Revenue from ordinary activities (net) $21,022 (2008: $18,850) Not comparable – 2008 was for 10 months

Profit (loss) from ordinary activities after tax attributable to security holder. ($21,286) (2008: $18,426)

Net profit (loss) attributable to security holders. ($21,286) (2008: $18,426)

Dividend: $0.012898

The National Property Trust (NPT) is pleased to announce that it has achieved an 11.3% annualised increase in net distributable earnings of $9.58 million. In the current economic environment this compares favourably with $7.17 million for the 10 months to 31 March 2008. The 10 month period resulted from a change in the Trust’s balance date from 31 May to 31 March.

NPT made dividend distributions in the year to March 2009 of 5.01 cents per unit, consistent with the Manager’s forecast of 5 cents per unit.

The Trust’s portfolio declined 9.1% in the value over the last 12 months to $266.8 million, a reduction of $28.08 million for the year. This coupled with unrealised fair value swap losses of $8 million at balance date, has resulted in an after tax loss for the year of $21.28 million.

Chairman of the National Property Trust Limited, Kevin Podmore says “The result is driven by solid underlying operating performance. Net rental income grew by 3.2% (after adjusting for the sale of the Gill Street property) to $21.02 million despite the occupancy rate dropping from 97.1% to 95.8%.”

Mr Podmore continues “The market remains challenging and we expect these difficult conditions to prevail for some time yet. The defensive attributes of the Trust’s spread portfolio come into play in these times.”

Capital Management – Debt Reduction

Mr Podmore says “The board of the Manager believe it is essential to manage the Trust’s assets conservatively in the current environment.”

The Trust’s current bank debt facility of $120 million is due to expire in November 2009. The Trust has proactively sought a new arrangement ahead of time and has accepted an offer from the Bank of New Zealand for a new $110 million bank facility. The facility runs for two and a half years to November 2011.

However, increased bank margins will adversely impact dividend distributions by approximately 0.9 cents. The impact of this on distributions is partly offset by increased rental income with the net effect being forecast dividend distributions of 4.5 cents per unit for the current financial year.

Portfolio Activity

As at 31 March 2009 the total number of tenants in the portfolio was over 340 and the majority of the Trust’s properties were performing in line with trading forecasts. However vacancy rates have increased to 4.2% of the total leaseable area up from to 2.9% at 31 March 2008.

During the year the refurbishment of Tauranga’s Goddards Centre was completed and resulted in the signing of a number of new tenants. The repositioning as a premium city destination saw the Centre attract quality tenants including Glassons, homeware store Cabbages & Kings and high-end fashion retailer, Moochi.

The Rialto Centre in Auckland has fashion retailer Kooky as a new tenant and the Homestore renewed their lease for a further six years. Print Place in Christchurch saw Dynamic Control renew their lease.

The General Manager of The National Property Trust Limited, John Crone says “Despite these successes the weakening market means that we are very focused on risk mitigation. For example, we are taking an active role in assisting retail tenants with their marketing efforts. We are also working closely with tenants to develop mutually beneficial solutions to mitigate the impact of a slowing economy.

As previously announced, in October 2008 NPT sold its Gill Street, New Plymouth property for $7.4 million. The sale price was above the 30 September 2008 valuation of $7.3 million and the proceeds of the sale were applied to debt reduction. This sale was in line with the Trust’s strategy of continuing to sell non-strategic properties in order to further reduce its debt to a targeted range of 30-35% of total assets. The Trust has accepted a conditional offer for the Goddard’s Centre, which is subject to purchaser finance.

The effect of the unrealised devaluation of the investment property portfolio resulted in the Trust’s gearing ratio increasing from 35.1% to 36.2% as at 31 March 2009. The Trust Deed Covenant ratio sits at 45% and the bank ratio at 50%.

At 31 March 2009, 76.8% of NPT’s total bank debt was hedged through interest rate swaps for an average duration of 7.23 years. This compares with 57.9% as at 31 March 2008. Subsequent to balance date the Trust has increased its swap cover to 90%.

Outlook

Over the coming year the Manager will be focused on maintaining occupancy levels in what is likely to be a very challenging environment. There will be continued focus on reducing debt and strengthening the balance sheet with proceeds from further property sales being applied to reduce debt.

Mr Crone says, “In 2009 the Trust has continued to focus on operational efficiency and enhancing value in the portfolio. We have made positive rental gains in a difficult market and we will continue to apply a policy of active asset management in order to maximise value for Unit Holders. The Trust’s portfolio is already spread across all commercial property types with a range and diversity of tenants being a real strength.”

Mr Podmore says, “We have been pleased to deliver to Unit Holders the dividend distribution target for the year. Over the next 12 months our focus will be strong hands-on administration coupled with conservative capital management”

ENDS

For further information please contact:

Kevin Podmore Tel: 021 273 2723 Mobile
Chairman
The National Property Trust Limited
Or
John Crone Tel: 04 903 4809 DDI
General Manager Tel: 021 273 2735 Mobile
The National Property Trust Limited


BACKGROUND

The National Property Trust (NPT) is an NZX-listed property vehicle with more than $268 million of commercial, retail and industrial properties in its portfolio. NPT owns properties in Auckland, Napier, Tauranga, Wellington and Christchurch. Its assets are managed by The National Property Trust Limited, a wholly owned subsidiary of property-related finance and funds management company St Laurence Limited. The St Laurence group of companies manages total assets of more than $1.15 billion for over 18,000 investors.

[Share Investor]

Fisher & Paykel Appliances Holdings Limited

Financial Results for the Year Ended 31 March 2009
FPA ASX/NZX Release 27 May 2009

Reporting Period: 12 Months to 31 March 2009
Previous Reporting Period: 12 Months to 31 March 2008

Amount (000s); Percentage Change

Revenues from Ordinary Activities: $1,372,565; -2.4%
Profit/Loss (-) from Ordinary Activities After Tax Attributable to Members: -$95,254; -275.7%
Net Profit/Loss (-) for the Period Attributable to Members: -$95,254; -275.7%

Final Dividend per Security: Nil; Not Applicable
Imputed Amount per Security for NZ Resident Shareholders: Not Applicable
Fully Franked for Australian Tax Residents: Not Applicable
Supplementary Dividend for Qualifying Non NZ Resident Shareholders: Not Applicable

Record Date for Determining Entitlements to the Dividend: Not Applicable
Payment Date for Dividends: Not Applicable


Successful Global Manufacturing Strategy Nears Completion

Normalised Group Profit after Taxation for the year ended 31 March 2009 was $33.8 million. Slowing consumer demand as a direct result of the global financial crisis significantly impacted sales in the second half of the financial year. Normalised Group Profit after Taxation for the second half of the year was $11.4 million compared to $22.4 million for the first half.

One-off costs associated with implementing Appliances’ Global Manufacturing Strategy amounted to $48.8 million after tax ($66.6 million before tax).

Other one-off costs, which were substantially non cash charges associated with the impairment of intangible assets, amounted to $80.3 million after tax ($85.7 million before tax), net of profits on the sale of New Zealand properties of $8.4 million after tax ($7.1 million before tax).

After deducting one off costs, the Group reported a Loss after Taxation of $95.3 million.
The Global Manufacturing Strategy commenced in 2005 is substantially complete with the refrigeration plant from Cleveland, Australia to Rayong, Thailand presently in transit and production due to commence in August 2009.

Appliances experienced difficult trading conditions in all markets. Given the adverse trading conditions arising as a result of the global financial crisis, progress made to date has been pleasing, especially in the following areas of the business:

• Continued execution of the Global Manufacturing Strategy during the year with the completion of the DCS move from Huntington Beach, USA to Reynosa, Mexico.
• Successful commissioning of the new DishDrawer? tall dishwasher production line at Reynosa, Mexico.
• Unit product conversion cost savings from the Thailand facility exceeding initial expectations.
• Completion of the temporary stock build to facilitate relocation of the refrigeration line from Cleveland, Australia to Rayong, Thailand. The move is anticipated to be completed in August 2009.
• Realigned staffing levels in all areas of the business to reflect current and anticipated future demand.
• Progress in the cost out programme including improvement in internal costs, raw materials costs and freight.
• Successful renegotiation of Appliances’ banking facilities with a view to overall deleveraging.
The Company believes that Appliances is well positioned to build on the foundation it has put in place in FY2009 in terms of new lower cost manufacturing facilities, efficient production capabilities, leaner staffing levels and increased distribution prospects.

The newly configured DishDrawer? tall dishwasher product in the North American market has been warmly received by both retailers and consumers. The DishDrawer? tall dishwasher offers features and benefits previously unavailable in the dishwasher drawer category and the Company has high expectations for future sales levels in respect of this product.

The Finance business delivered a satisfactory result especially given the uncertainty within the New Zealand economy. New term funding facilities have been secured and the level of retail debentures has increased, improving funding headroom.



• The full result will also be available on the Company’s website – http://www.fisherpaykel.com

• For further information please contact John Bongard, CEO and Managing Director or Paul Brockett, VP Investor Relations on +64 9 2730600.

In conjunction with the release, Fisher & Paykel Appliances Holdings Limited will host a conference call to review the result and to discuss the outlook for the new financial year. The conference call is scheduled to begin at 11:00am NZST; 9:00am AEST.

Individuals wishing to listen to the webcast can access the event at the Company's website http://www.fisherpaykel.com. Please allow extra time prior to the webcast to visit the site and download the streaming media software required to listen to the broadcast.

To participate in the conference call, please dial in to one of the numbers below a few minutes prior to the scheduled call time and identify yourself to the operator:

- Australia Toll Free 1800 505083
- Hong Kong Toll Free 800 967659
- New Zealand Toll Free 0800 449118
- Singapore Toll Free 800 6162160
- United Kingdom Toll Free 0800 0689834
- United States Toll Free 1866 3694113

An on-line archive of the broadcast will be available approximately 2 hours after the webcast and will be accessible for one week at +61 3 92214752; access code 063298.

Contacts:

John Bongard; Telephone +64 9 2730600
Paul Brockett; Telephone +64 9 2730600

Related Attachments

Equity Raising.pdf

[Share Investor]

Rakon Limited
Results for announcement to the market
Reporting period Year ended 31st March 2009
Previous reporting period Year ended 31st March 2008

Amount NZ$000 % Change
Revenue from ordinary activities 139,472 (20%)
Earnings before interest, tax, depreciation, amortisation & share based payments 18,529 a (27%) b
Earnings before interest & tax 9,963 a (40%)
Net profit after tax 4,469 a (59%)
Note a: includes equity accounted earnings of NZ$250,000.
b: equals 21% when non-recurring gain in FY08 of NZ$1,992,000 is excluded.

Amount per security Imputed amount per security
Interim / Final Dividend Nil Nil
Record Date Not Applicable Not Applicable
Dividend Payment Date Not Applicable Not Applicable


Comments
Rakon Limited (NZX: RAK) is reporting a solid result for the year with strong results from its international operations in a difficult economic climate.
Announcing its financial results for the year ending 31 March 2009, Rakon reported revenue of NZ$139.5 million and EBITDA of NZ$18.5 million for the period, down 20% and 27% respectively on the prior year. Net profit after tax was NZ$4.5 million after accounting for higher depreciation and a higher effective tax rate (due to composition of Group earnings). A strong focus on working capital delivered strong operating cash flow of NZ$16.6 million, up from NZ$1.4 million in the prior year which has enabled Rakon to maintain its investment in product development for future revenue growth and maintain a healthy balance sheet with substantial unused debt facilities.
Brent Robinson, Rakon Managing Director said, “We are pleased with what we have achieved in a very challenging economic environment. Our decision to diversify into non-consumer markets has helped insulate us from the slowdown in certain retail sectors and puts us in a strong position as consumer confidence returns.”
Over the past two years Rakon has taken significant steps to position itself as a global business with a competitive manufacturing platform that enables it to sustain and expand market share in high growth markets. Rakon’s business now comprises wholly owned manufacturing operations and engineering design centres in New Zealand, the UK and France, as well as joint venture manufacturing operations and engineering design centres in India and China.
“We have seen strong demand coming from communications infrastructure customers. We continue to improve our market share, as new technologies and networks are deployed which our innovative products are specifically targeted towards and are well suited to.”
Mr Robinson said the growth in capturing market share was driven by the significant technology advantage Rakon has on its competition, through products specifically designed for those markets.
The European business performed strongly in 2009 with its products having a stronger focus on industrial and infrastructural markets. It was therefore less impacted by the sharp decline in consumer spending.
Adjusting for the sale of the trading business in May 2009, European revenue was up 10% on the prior year as an increase in sales of our high specification Pluto TCXO offset reduced revenue from other older product categories. The improvement in product mix plus lower manufacturing costs (automation, materials and sub contracting) improved the earnings over the prior year. The transfer of volume manufacturing capability from France to Rakon’s Indian joint venture is now essentially complete and the Joint Venture recorded a small profit in the final quarter of the 2009 year.
“The strong result from our UK operations is particularly pleasing. March sales of this year were an all time record for the UK; a tremendous result given the environment,” said Mr. Robinson.
Revenue from the NZ business which is largely focussed on sales into consumer GPS products was significantly impacted by the global economic climate in the second half of the year. As a result revenue for the full year was down 27% to NZ$80 million. Selling prices for high volume products reduced 20% over the year with half of this concentrated in the final quarter. Total sales volume was also down 25%. As in previous periods material cost reductions and productivity improvements partially mitigated the impact of softer revenues.
As an early response to the extraordinary reduction in market demand in October 2008, Rakon reduced its NZ workforce by 10% in November in the areas of production labour and support staff. As a further step Rakon reduced its manufacturing capacity by shifting from a 5 day to 4 day week (24 hour shift) for an eight week period between February and April 2009. Rakon returned to a 5 day week after Easter to match capacity with increasing demand.
“The actions we took at these times were necessary to ensure our business was appropriately resourced without jeopardising key projects under development. The attitude of both those who stayed, and those we had to let go, has been outstanding and makes me confident of Rakon’s ongoing success,” said Mr. Robinson.
Rakon is seeing some demand returning in consumer markets, but Mr Robinson pointed out the company remains cautious in the current economic climate.
“Sales of consumer GPS were soft in the second half of the financial year, but we are now seeing some demand returning. We also continue to grow our presence strongly in the GPS enabled phone handset market.”
“This is a highly competitive market and we expect prices and margins to continue to be under pressure. However, with over half of all cell phones expected to have GPS functionality by 2014, increased volumes will more than offset this.”
Rakon remains optimistic but cautious about the 2010 financial year and believes it is well positioned to take advantage of any upturn in the market.
“We have a diverse product portfolio and an excellent market position. This enables us to capitalise on the growth in emerging wireless technologies, such as femtocells, as well as the significant growing demand for GPS. We see GPS enabled phones and other new applications such as netbooks, as being very significant for us in the future.”
“We are also continuing to investigate further investment in China, to build upon our 40% stake in Timemaker acquired in June 2008. We consider offshore manufacturing in China and India as being one of the keys to Rakon’s success in the coming years.”

Directors Declaration (NZX Listing Rules Appendix 1, 3.1 & 3.2)
The Directors declare that the consolidated financial information on pages 4 to 19 has been prepared in compliance with applicable Financial Reporting Standards and extracted from audited financial statements. The auditors have issued an unqualified opinion on the financial statements. The accounting policies the Directors consider critical to the portrayal of the company’s financial condition and results which require judgements and estimates about matters which are inherently uncertain are disclosed in note 2.17 of the financial statements that form part of this announcement.

Income Statements
For the year ended 31 March 2009



The accompanying notes form an integral part of these financial statements.

Statements of Changes in Equity
For the year ended 31 March 2009



The accompanying notes form an integral part of these financial statements.
Balance Sheets
As at 31 March 2009


The accompanying notes form an integral part of these financial statements.

Statements of Cash Flows
For the year ended 31 March 2009

The accompanying notes form an integral part of these financial statements.
Statements of Cash Flows
For the year ended 31 March 2009


The accompanying notes form an integral part of these financial statements.
Notes to the Financial Statements
1. General information
Rakon Limited (“the Company”) and its subsidiaries (together “the Group”) is a world leader in the development of frequency control solutions for a wide range of applications. Rakon has leading market positions in the supply of crystal oscillators to the GPS, telecommunications network timing/synchronisation, and aerospace markets.
The Company is a limited liability company incorporated and domiciled in New Zealand. It is registered under the Companies Act 1993 with its registered office at One Pacific Rise, Mt Wellington, Auckland. The Company is an issuer in terms of the Securities Act 1978 and is listed on the New Zealand Stock Exchange.
These financial statements have been approved for issue by the Board of Directors on 27 May 2009.

2. Summary of significant accounting policies
2.1. Basis of preparation
These financial statements of the Group and Parent, profit oriented entities, are for the year ended 31 March 2009. They have been prepared in accordance with the requirements of the Financial Reporting Act 1993, the Companies Act 1993 and in accordance with New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”).
Accounting policies applied in these financial statements comply with NZ IFRS and New Zealand equivalents to International Financial Reporting Interpretations Committee (“NZ IFRIC”) interpretations issued and effective or issued and early adopted as at the time of preparing these financial statements as applicable to Rakon Limited as a profit oriented entity. The Group and Parent, are in compliance with International Financial Reporting Standards (“IFRS”).
The accounting principles recognised as appropriate for the measurement and reporting of profit and loss and financial position on an historical cost basis have been applied, except as modified by the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
The preparation of financial statements in accordance with NZ IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates, refer to note 2.17.

2.2. Consolidation
(a) Subsidiaries
Subsidiaries are entities that are controlled, either directly or indirectly, by the Parent Company. Control exists when the Parent has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries, associates, joint ventures and businesses by the Group. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.
All material transactions between subsidiaries or between the Parent Company and subsidiaries are eliminated on consolidation.

(b) Associates
Associates are entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. The Group’s investment in associates includes goodwill identified on acquisition, net of any accumulated impairment loss.
The Group’s share of its associates’ post acquisition profits or losses is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceed its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.
(c) Joint ventures
The Group’s interests in jointly controlled entities are accounted for using the equity method of accounting and are initially recognised at cost. The Group’s investment in jointly controlled entities includes goodwill identified on acquisition, net of any accumulated impairment loss.
The Group’s share of its joint ventures’ post acquisition profits or losses is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment.
Unrealised gains on transactions between the group and its joint ventures are eliminated to the extent of the Group’s interest in the joint venture. Unrealised losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred. Accounting policies of joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group.

2.3. Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency that best reflects the economic substance of the underlying events and circumstances relevant to that entity (the “functional currency”). The consolidated financial statements are presented in New Zealand dollars, (the “presentation currency”), which is the functional currency of the Parent.
(b) Transactions and balances
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to New Zealand dollars at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement, except when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to New Zealand dollars at foreign exchange rates ruling at the dates the fair value was determined.
(c) Group companies
The assets and liabilities of all of the Group companies (none of which has a currency of a hyper-inflationary economy) that have a functional currency that differs from the presentation currency, including goodwill and fair value adjustments arising on consolidation, are translated to New Zealand dollars at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of these foreign operations are translated to New Zealand dollars at rates approximating to the foreign exchange rates ruling at the dates of the transactions.
Exchange differences arising from the translation of foreign operations are recognised in the foreign currency translation reserve and of borrowings and other currency instruments designated as hedges of such investments, are taken to shareholders’ equity.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and are translated at the foreign exchange rates ruling at the balance sheet date.

2.4. Share capital
Ordinary shares and redeemable ordinary shares are classified as equity.
Partial payments received in respect of redeemable ordinary shares issued under the Rakon Share Growth Plan are classified as liabilities in the financial statements. When employees exercise their conditional rights to the redeemable ordinary shares, these shares convert to ordinary shares with the proceeds credited to equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

2.5. Property, plant and equipment
(a) Initial recording
Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The cost of purchased property, plant and equipment is the value of the consideration given to acquire the assets and the value of other directly attributable costs, which have been incurred in bringing the assets to the location and condition necessary for their intended service. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant or equipment.
(b) Subsequent costs
The entity recognises in the carrying amount of an item of property, plant or equipment the cost of replacing part of such an item when that cost is incurred only when it is probable that the future economic benefits embodied with the item will flow to the entity and the cost of the item can be measured reliably. All other costs are recognised in the income statement as an expense as incurred.
(c) Depreciation
Depreciation of property, plant and equipment, other than freehold land, is calculated on a straight line basis so as to expense the cost of the assets to their expected residual values over their useful lives as follows:

Land Nil
Buildings 10%
Leasehold improvements 3 – 20%
Computer hardware 36%
Plant and equipment 5 – 10%
Motor vehicles 20 – 25%
Furniture and fittings 6 – 50%
Assets under course of construction Nil
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within “other gains/(losses) – net” in the income statement.

2.6. Leases
The entity is the lessee
Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance charge is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Property, plant and equipment acquired under finance leases is depreciated over the shorter of the asset’s useful life and the lease term.
Leases where the lessor retains substantially all the risk and rewards of ownership are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

2.7. Intangible assets
(a) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary, associate or joint venture at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets.
Goodwill on acquisition of associates and joint ventures is included in “investment in associates/interest in joint ventures” and is tested for impairment as part of the overall balance.
Separately recognised goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose.
(b) Patents, trademarks, licenses, order backlogs and software
Identifiable intangible assets that are acquired by the Group are stated at cost less accumulated amortisation and impairment losses. Subsequent expenditure on intangible assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred.
Expenditure on internally generated goodwill and brands is recognised in the income statement as an expense as incurred.
Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives of intangible assets unless such lives are indefinite. Acquired patents and licenses are amortised over their anticipated useful lives of 7-10 years. Acquired trademarks are amortised over their contractual lives of 18 months. Order backlogs are amortised over their anticipated useful lives of 13-18 months.
Software assets, licences and capitalised costs of developing systems are recorded as intangible assets and amortised over a period of 3-5 years unless they are directly related to a specific item of hardware and recorded as property, plant and equipment.
(c) Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised in the income statement as an expense as incurred. Any research and development taxation credits are recognised when eligibility criteria have been met and are treated as a reduction in expenses.
Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised if the product or process is technically and commercially feasible and the entity has sufficient resources to complete development. Other development expenditure is recognised in the income statement as an expense as incurred.

2.8. Inventories
Inventories are stated at the lower of cost (weighted average cost) or net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.


2.9. Impairment of non-financial assets
The carrying amounts of the Group’s non-financial assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated being the higher of an asset’s fair value less costs to sell and the asset’s value in use. An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement.
For goodwill the recoverable amount is estimated at each balance sheet date. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units (group of units) and then, to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

2.10. Financial instruments
Financial instruments comprise cash and cash equivalents, trade and other receivables, trade and other payables, borrowings and derivative financial instruments (forward foreign exchange contracts, forward foreign exchange options and interest rate swaps) and investment in shares.
Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument.
(a) Cash and cash equivalents
Cash and cash equivalents comprise cash balances, call deposits, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet.
(b) Trade and other receivables
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the income statement.
Rakon France SAS has a trade receivable financing facility with Societe Generale. The trade receivables continue to be recognised in the balance sheet at their estimated realisable value as the credit risk is retained by Rakon France SAS.
(c) Financial assets
The Group classifies its financial assets in the following categories: financial assets at fair value through profit or loss and loans and receivables. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition and re evaluates this designation at each reporting date.
1. Financial assets at fair value through profit or loss
This category has two sub categories: financial assets held for trading, and those designated at fair value through profit or loss on initial recognition. For accounting purposes, derivatives are categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within 12 months of the balance sheet date.
2. Loans and receivables
Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of selling the receivable. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non current assets. The Group’s loans and receivables comprise ‘trade and other receivables’ and ‘cash and cash equivalents’ in the balance sheet.
Purchases and sales of financial assets are recognised on trade-date – the date on which the Group commits to purchase or sell the asset. Financial assets at fair value through profit and loss are carried at fair value. Loans and receivables are carried at amortised cost using the effective interest method. Realised and unrealised gains and losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category are included in the income statement in the period in which they arise.
The Group establishes fair value by using valuation techniques. These include reference to the fair values of recent arm’s length transactions, involving the same instruments or other instruments that are substantially the same, and discounted cash flow analysis.
The Group assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. Impairment testing of trade receivables is described above.
(d) Available-for sale-financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets (Investment in shares) unless management intends to dispose of the investment within 12 months of the balance sheet date.
Investments are initially recognised at fair value plus transaction costs and are subsequently carried at fair value. Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale are analysed between translation differences resulting from changes in amortised cost of the security and other changes in the carrying amount of the security. The translation differences on monetary securities are recognised in profit or loss, while translation differences on non-monetary securities are recognised in equity. Changes in the fair value of monetary and non-monetary securities classified as available-for-sale are recognised in equity.
When securities classified as available for sale are sold or impaired, the accumulated fair value adjustments recognised in equity are included in the income statement as ‘gains and losses from investment securities’.
Dividends on available-for-sale equity instruments are recognised in the income statement as part of other income when the Group’s right to receive payments is established.
The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models making maximum use of market inputs and relying as little as possible on entity-specific inputs.
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss – is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement.
(e) Trade and other payables
Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
(f) Interest bearing borrowings
Interest bearing borrowings are recognised initially at fair value, plus transaction costs incurred. Subsequent to initial recognition, interest bearing borrowings are measured at amortised cost with any difference between the proceeds (plus transaction costs) and the redemption amount recognised in the income statement over the period of the borrowings using the effective interest method. Arrangement fees are amortised over the term of the loan facility. Other borrowing costs are expensed when incurred.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.
(g) Derivative financial instruments
The Group uses derivative financial instruments to hedge its exposure to foreign exchange and interest rate risks. The Group does not hold or issue derivative financial instruments for trading purposes. However, derivatives that do not qualify for hedge accounting are accounted for as trading instruments.
Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are re-measured at their fair value at subsequent reporting dates. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. The Group designates certain derivatives as hedges of a particular risk associated with a recognised liability or a highly probable forecast transaction (cash flow hedge).
The Group documents, at the inception of the transaction, the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items.
The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in equity. The gain or loss relating to the ineffective portion is recognised immediately in the income statement within other gains/(losses) – net.
Amounts accumulated in equity are recycled in the income statement in the periods when the hedged item affects profit or loss (for example, when the forecast sale that is hedged takes place). The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognised in the income statement within finance costs. The gain or loss relating to the effective portion of forward foreign exchange contracts hedging export sales is recognised in the income statement within sales. The gain or loss relating to the effective portion of forward foreign exchange contracts hedging raw materials is recognised in the income statement within cost of sales.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement within other gains/(losses).
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognised immediately in the income statement.

2.11. Fair value estimates
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Techniques, such as estimated discounted cash flows, are used to determine fair value for financial instruments. The fair value of forward exchange contracts is determined using forward exchange market rates at the balance sheet date. The fair value of interest rate swaps is the estimated amount that the Group would receive or pay to terminate the swap at the reporting date.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.


2.12. Employee entitlements
(a) Long term employee benefits
The Group’s net obligation in respect of long service leave and the French retirement indemnity plan is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using the projected unit credit method and is discounted to its present value and the fair value of any related assets is deducted. The French retirement indemnity plan entitles permanent French employees to a lump sum on retirement. The payment is dependent on an employee’s final salary and the number of years of service rendered.
(b) Short term employee benefits
Employee entitlements to salaries and wages and annual leave, to be settled within 12 months of the reporting date represent present obligations resulting from employee’s services provided up to the reporting date, calculated at undiscounted amounts based on remuneration rates that the entity expects to pay.
(c) Share based plans
The Group’s management awards qualifying employees bonuses in the form of share options and conditional rights to redeemable ordinary shares, from time to time, on a discretionary basis. These are subject to vesting conditions and their fair value is recognised as an employee benefit expense with a corresponding increase in other reserve equity over the vesting period. The fair value determined at grant date excludes the impact of any non-market vesting conditions, such as the requirement to remain in employment with the entity. Non-market vesting conditions are included in the assumptions about the number of options that are expected to vest and the number of redeemable ordinary shares that are expected to transfer. At each balance sheet date the estimate of the number of options expected to vest and the number of redeemable ordinary shares expected to transfer is revised and the impact of any change in this estimate is recognised in the income statement with a corresponding entry to equity. The proceeds received net of any directly attributable transaction costs are credited to share capital when the options are exercised or the conditional rights to redeemable ordinary shares are transferred.
(d) Overseas government superannuation schemes
The Group’s overseas operations participate in their respective government superannuation schemes whereby the Group is required to pay fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not have sufficient assets to pay all employees the benefits relating to the employee service in the current and prior periods. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due.

2.13. Provisions
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

2.14. Revenue
(a) Goods sold and services rendered
Revenue comprises the fair value of amounts received and receivable by the Group for goods and services supplied in the ordinary course of business. Revenue is stated net of Goods and Services Tax collected from customers. Revenue from the sale of goods is recognised in the income statement when the significant risks and rewards of ownership have been transferred to the buyer and the amount can be measured reliably. Revenue from services rendered is recognised in the income statement in proportion to the stage of completion of the transaction at the balance sheet date.
(b) Interest income
Interest income is recognised in the income statement as it accrues, using the effective interest method.
(c) Dividend income
Dividend income is recognised when the right to receive payments is established.
(d) Royalty income
Royalty income is recognised on an accruals basis in accordance with the substance of the relevant agreements.
(e) Government grants
Government grants related to an expense item are recognised as income when the right to receive payment has been met.

2.15. Income tax
Income tax on the profit or loss for the periods presented comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries, associates and joint ventures to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

2.16. Segmental reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different from those of other business segments. A geographical segment is engaged in providing products or services within a particular economic environment that are subject to risks and returns that are different from those of segments operating in other economic environments.

2.17. Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below.
(a) Estimated impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 2.9. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates.
(b) Income taxes
The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
(c) Provisions for inventory obsolescence
The Group makes estimates and assumptions regarding the value of inventory obsolescence, these are based on the existing available information.

2.18. New accounting standards and IFRIC interpretations
(a) Interpretation early adopted by the Group
NZ IFRIC 16 Hedges of a net investment in a foreign operation (effective for annual periods beginning on or after 1 October 2008
NZ IFRIC 16 clarified the accounting treatment in respect of net investment hedging. This includes the fact that net investment hedging relates to differences in functional currency not presentational currency, and hedging instruments may be held anywhere in the Group. The requirements of NZ IAS 21 The effects of changes in foreign exchange rate do apply to the hedged item. The early adoption does not impact the financial statements, it confirms the treatment used.
(b) Interpretations effective in 2009 but not relevant
The following interpretations to published standards are mandatory for accounting periods beginning on or after 1 January 2008 but are not relevant to the Group’s operations
NZ IFRIC 12 Service concession arrangements
NZ IFRIC 13 Customer loyalty programmes
(c) Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the group
At the date of authorisation of these financial statements, the following standards and interpretations were on issue but not yet effective but which the Group has not early adopted:

NZ IFRS 2 Amendments to Share Based Payments: vesting conditions and cancellations (effective for annual periods beginning on or after 1 January 2009)

The directors anticipate that the adoption of amendments to this standard in future periods will have no material impact on the financial statements of the Group.

NZ IFRS 3 Business Combinations (revised) (effective for annual periods beginning on or after 1 July 2009)

The directors anticipate that the adoption of amendments to this in future periods will impact the value of acquisitions recognised in the financial statements as transaction and acquisition costs are expensed instead of capitalised.

NZ IFRS 8 Operating segments (effective for annual periods beginning on or after 1 January 2009)
The directors anticipate that the adoption of this standard in future periods will have no material impact on the financial statements of the Group, except for disclosures.
NZ IAS 1 Presentation of financial statements (effective for annual periods beginning on or after 1 January 2009)
The directors anticipate that the adoption of this standard in future periods will have no material impact on the financial statements of the Group, except for disclosures.
NZ IAS 23 Borrowing costs (revised) (effective for annual periods beginning on or after 1 January 2009)
The directors anticipate that the adoption of this standard in future periods will have no material impact on the financial statements of the Group.

NZ IAS 27 Consolidated and Separate Financial Statements (amended) (effective for annual periods beginning on or after 1 July 2009)
The directors anticipate that the adoption of this standard in future periods will have no material impact on the financial statements of the Group.
NZ IAS 32 & IAS 1 Puttable financial instruments and obligations arising on liquidation (effective for annual periods beginning on or after 1 January 2009)
The directors anticipate that the adoption of this standard in future periods will have no material impact on the financial statements of the Group.
NZ IAS 39 Recognition and measurement of eligible hedged items (effective for annual periods beginning on or after 1 July 2009)
The directors anticipate that the adoption of this standard in future periods will have no material impact on the financial statements of the Group.
NZ IFRIC 13 Customer loyalty programmes (effective for annual periods beginning on or after 1 July 2009)
NZ IFRIC 15 Agreements for the construction of real estate (effective for annual periods beginning on or after 1 January 2009)
NZ IFRIC 13 and NZ IFRIC 15 are not applicable to the Group and will therefore not affect the Group’s financial statements.

Other Information
A. Dividends (NZX Listing Rules Appendix 1: 2.3(d))
Rakon Limited currently has adopted a policy that there will not be any dividend payments made for the foreseeable future and surplus funds will be retained in order to capitalise on immediate and future growth opportunities.
B. Net Tangible Assets per Security (NZX Listing Rules Appendix 1: 2.3(f))
31 March 2009 31 March 2008
Net tangible assets $000 100,455 92,611
Number of ordinary securities 000 127,939 127,869
Net tangible asset backing per ordinary security $ 0.79 0.72
C. Control gained and lost over Entities (NZX Listing Rules Appendix 1: 2.3(g))
Rakon Limited has acquired the following entities during the period:
Rakon Investment HK Limited (newly acquired holding company)
D. Associates & Joint Ventures (NZX Listing Rules Appendix 1: 2.3(h))
Rakon Limited has the following associate entities and joint venture arrangements.
Shareholding
Centum Rakon India Private Limited 49%
Shenzhen Timemaker Crystal Technology Co, Limited 40%
Roye Crystal Technology (Shanghai) Co, Limited 40%
Shenzhen Taixiang Wafer Co, Limited 40%
The contribution of Centum Rakon to Rakon Limited’s profit from ordinary activities is shown in note 21 of the financial statements. The contribution of Timemaker, Roye and Taixiang to Rakon Limited’s profit from ordinary activities is shown in note 20 of the financial statements.
E. Audit (NZX Listing Rules Appendix 1: 1.3(l))
The financial statements have been audited and will not be subject to any qualification.
F. Business Changes (NZX Listing Rules Appendix 1: 1.3(m))
There have not been any major changes or trends in Rakon’s business subsequent to year end.

[Share Investor]

METHVEN LIMITED
Results for announcement to the market
Reporting Period Year ended 31 March 2009
Previous Reporting Period Year ended 31 March 2008

Amount (000s) Percentage change
Sales revenue from ordinary activities $137321 +19.7%
Profit from ordinary activities after tax attributable to shareholders $10056 +3.1%
Net Profit attributable to shareholders $10056 +3.1%

Gross amount per share Imputation tax credit per share
Final Dividend 5.50 cents 2.36 cents
Record Date 19 June 2009
Dividend Payment Date 30 June 2009

Audit The abridged financial statements attached to this report have been audited.

Comments: Refer to the following section for commentary.


Earnings per Security (EPS)

Calculation of basic and fully diluted EPS in accordance with IAS 33: Earnings Per Share

Current full-year (cents per share) Previous corresponding full-year (cents per share)
Basic EPS 15.1 18.3
Diluted EPS 15.1 18.3


Dividends Paid/Payable

Date Paid Cents per share (fully imputed)
Final Dividend for the year ended 31 March 2009 30 June 2009 5.50
Interim Dividend for the year ended 31 March 2009 31 December 2008 6.25


Net Tangible Assets per share

Current full-year Previous corresponding full-year
Net Tangible Assets per share $0.18 $0.12



METHVEN GROUP LIMITED – 2008-2009 ANNUAL RESULTS

Results for the Year Ended 31 March 2009


Group NPAT up 3.1% from $9.8m to $10.1m in line with H/Y guidance
Group Operating Revenue up 19.7% from $114.8m to $137.3m
EBITDA up 4.4% from $18.9m to $19.8m
Net Debt down 17.7% from $32.6m to $26.8m
Fully imputed final dividend of 5.5 cps to be paid on 30 June 2009, down 8.3 percent from 6.0 cps, to bring total dividend for the year to 11.75 cps
Encouraging UK result with first full year revenues $57.5m and EBITDA $7.9m (GBP3.0m) in line with preacquisition expectations, despite the depth of the recession. Promising UK exports to the Middle East of $1.7m
Methven NZ sales down 10.7% to $38.1m and EBITDA down 9.5% to $11.0m but remain domestic leader with 50% plus market share and strength in renovation sector
Methven Australia sales up 19.8% to $41.6m on strong growth in Satinjet shower and tapware sales but EBITDA down 26.0% as continued to build sales and distribution structure
USA EBITDA loss down 28.4% to $0.9m and migrated to servicing out of NZ with third party warehouse and agency representation.



Directors’ Review

Methven Group has delivered a highly creditable 2008-09 result in line with half year guidance to maintain bottom line profit growth despite the incredibly challenging market conditions, particularly in the second half.

The Group result demonstrates the effectiveness of Methven’s strategy to diversify its revenue sources across different markets and product ranges. It also reflects the company’s inherent strengths to deliver unique showering experiences from turning a home shower into a home spa or retrofitting a hotel room with a luxurious, energy and water efficient Satinjet shower.

Methven Group has successfully reduced its debt to $26.8 million from $32.6 million. Potential for further debt reductions from trading cashflows leaves Methven well positioned to weather continued economic uncertainties.

Financial Performance

After a challenging second half, the year to 31 March 2009 ended with NPAT up 3.1% from $9.8 million to $10.1 million (including one off UK tax credits of $636,000).

Group Operating Revenue increased by 19.7% over the prior year from $114.8 million to $137.3 million, with EBITDA up 4.4% from $18.9 million to $19.8 million. This reflected the full year contribution of Deva Tap Company in the UK, which produced an outstanding result given the trading climate in the market worst affected by recession, combined with the expected contraction in New Zealand. In addition, the extent of the second half downturn in the Australian market meant that we did not generate the contribution targeted to cover the additional expenditure in the sales and marketing area.

The Group benefited from Deva’s global sourcing model to reduce the cost of products, a reduction in brass and copper prices, a company-wide regime of tight operating cost management and reduced capital expenditure.

The Group ended the financial year with solid earnings, better cash flows and reduced debt, down 17.7% from $32.6 million to $26.8 million.



Dividend

Directors are comfortable with the strength of the balance sheet, including the prudent level of borrowings, banking covenant compliance and favourable debt financing arrangements which are in place to August 2010.

However, given the continued uncertainty of the economic outlook, directors have decided to be prudent and reduce the final, fully imputed dividend to 5.5 cps to be paid on 30 June 2009, down 8.3 percent or 0.5 cps on prior year. Shareholders will receive a gross dividend of 7.86 cps, an imputation credit of 2.36 cps, with the net cash in hand dividend being 5.5 cps (for NZ resident shareholders).

Market Overview

United Kingdom
Operating Revenue of $57.5 million compared to $37.3 million for seven months trading in prior year
EBITDA of $7.9 million (GBP3.0 million) still in line with pre-acquisition expectations
Middle East division sales $1.7 million

The UK (Deva business) produced a strong result despite very weak economic conditions, achieving increased market share while reducing costs.

Deva is a highly successful operator with a low cost model and high service standards. It also oversees the Group’s global sourcing capability to achieve a lower cost of product.

While the outlook for the UK economy is for a long recession, there is increasing opportunity for our Satinjet products which we launched in 2008. We are using the experience gained from building the Australian market to move up to branded premium showerware and tapware. There has been modest success already in the specifier and hotel market for Satinjet products.

The expansion of our UK business into the Middle East is also going relatively well with first sales recorded totalling $1.7 million.

Deva’s value end ranges will soon be sold in Australia and New Zealand to complement the branded higher end Methven products to give merchants and consumers wider choice at different price points.

New Zealand
Operating Revenue down 10.7% from $42.7 million to $38.1 million
EBITDA down 9.5% from $12.1 million to $11.0 million (includes market development costs of the Maia beauty shower and all Group overheads )
Market share increased and well positioned in DIY and renovation market with full ranges
Combined building permits down 22.4% year on year; new build down 33.9%; renovation down 9.2%

Despite extremely tough trading conditions and a significant drop in the building market, Methven New Zealand continued to maintain and grow its New Zealand market share.

In a climate where cash is king, Methven expects to retain its leadership position and strength in the renovation and DIY segment as merchants are reverting to trusted and credible suppliers with stock on hand and who are able to provide a full range of products at different price points to meet the market.

There is rigorous focus on continuing to reduce costs and leverage the savings through Group sourcing from China and elsewhere.

We are looking more at developing product range extensions in the short term rather than new platform technologies. This includes introducing high end Satinjet Tahi and Kiri showerhead variants with complementary tapware.

A strategic new, world first technology, the new Methven shower infusion range which turns a home shower into a home spa, was released to market in May 2009.

A key area of opportunity we have identified is extending our offer into the hotel sector where we can demonstrate attractive savings in energy and water usage through the retrofit of existing showerheads with Methven Satinjet technology.

Australia
Operating Revenue up 19.8% from $34.7 million to $41.6 million:
Satinjet sales up 17% on last year
Tapware sales up 53% on last year
NEFA maintained market share but at reduced margin in intensely competitive market
Investment in sales and marketing infrastructure continued
EBITDA down 26.0% from $2.9 million to $2.1 million

Australian Satinjet showerware sales reached a new record high in the year under review with complementary tapware ranges adding to the Methven brand’s overall appeal, but the market grew increasingly soft in the second half and cost rationalisation initiatives took time to take effect.

NEFA held market share in the intensely competitive valving segment, but the cost benefits from integrating distribution within the Methven Australia infrastructure are only now beginning to come through along with the savings from China sourcing.

We will continue our push into the hotel market where we have retrofitted 6,000 rooms since 2005 with Satinjet showerware, based on justified energy and water saving benefits, as well as providing hotel guests a luxurious showering experience.

USA
EBITDA loss down 28.4% from $1.2 million to $0.9 million and continuing to reduce
Rationalised in-market representation to service customers from NZ and through agents

We have reduced the losses in this market from $1.2 million in 2007-08 to $900,000 in the year under review and a cost neutral position is expected at the end of the 2009-10 financial year as a result of exiting from direct representation.

We have cut our losses and are being realistic in the current environment to focus on our core markets.

Opportunities for Growth

While the worldwide recession demands prudence, we are alert to new opportunities and are not standing still with a range of short and longer term initiatives being rolled out.

Methven’s unique point of difference is that we are dedicated to creating the ultimate shower experience to fulfil what consumers around the world have told us they want from their shower: personal space, time out to relax and indulge, rejuvenate and think. At the same time they want stylish, user friendly showers and they want to know that they are energy and water efficient. Methven Satinjet showers deliver that promise.

In 2008, we launched the world’s first beauty shower, Satinjet Maia, with a unique Vitamin C filter to neutralise chlorine to help purify the water and better protect the face, skin and hair from drying out as well as all over body spray and deep tissue massage features.

Methven Shower Infusions
In 2009, another world first is being trialled – Methven shower infusions. It’s a simple idea that enables an ordinary shower to be transformed into a personal home spa experience.

It comes with a patented infusion pod that can be attached to an existing shower system. The pod includes a cartridge that is filled with naturally based essential oils, vitamins and fragrances to transform the mood and pamper the skin. The shower infusion is released when the shower water runs through the pod creating an aromatherapy and hydrotherapy experience. A complementary range of hand and body products has also been produced to sell alongside the shower infusions to create a total HomeSpa experience.

The infusion innovation is already being sold at Auckland’s premium Smith and Caughey department store, selected plumbing merchants in Auckland and Hamilton and via Methven’s website at http://www.methven.com. At this stage the infusions are only being trialled in New Zealand to ensure we have a proven sales model before extending distribution.

Hotel Market
A priority for Methven currently is to promote to hotels the water and energy efficiencies, coupled with a luxurious shower experience, which can be gained from a simple retrofit of bathrooms with Satinjet showerware. Potential savings have strong appeal to hoteliers looking for every avenue to lift their margins.

The company has retrofitted around 6,000 rooms in Australia alone and believes that this sector provides a global niche opportunity.

Export Development Model
Methven is also seeking to expand its geographic market reach beyond Australasia and the UK in its bid to become a global brand.

A complementary export model is being pursued with dedicated expertise to secure plumbing and DIY distributors in new markets, including Asia, South America and Europe, for Methven’s wide range of showerware, tapware and valving.

Range Extensions
We are re-focusing on enhancing the current Satinjet proprietary offering to exploit our existing platform technology, rather than investing primarily in developing new platform technologies. Enhancements of the premium Tahi and Kiri showerware have been launched to provide wider choice to discerning consumers. Methven tapware ranges are also being extended to provide a complete bathroom look.

Strategy and Outlook

Trading conditions in all Methven’s key markets remain extremely challenging. The directors therefore do not expect the company to replicate the relatively strong prior year first half performance this year.

However, we have real confidence in the company’s business models, its ability to weather the current economic climate and to resume profitable growth in the future.

Methven’s plan includes continued focus on costs, particularly by utilising the Deva managed global procurement process, and reducing capital expenditure and working capital.

The renovation and replacement market is also proving relatively resilient. The global opportunities for Satinjet retrofits for hotels provide an immediate marketing priority as is extending our international distribution in non traditional markets. Methven also believes a key factor in its competitive appeal is being able to offer extended ranges of products from premium end through to Deva-sourced tapware and showerware that suit the value end of the market.

Strategic investments in the new HomeSpa shower infusions technology will be maintained with a view to positioning Methven in the beauty and wellbeing category in the longer term.

We will keep the market and shareholders informed of our progress through the year.




Notice of Event Affecting Securities

Nature of Event: Dividend

EXISTING securities affected by this
Description of the class of securities: Ordinary
ISIN: NZMVNE0001S9

Monies Associated with Event
Amount per security: $0.0550
Currency: NZD
Total Monies: $3,663,344.58

Source of Payment: Retained Earnings

Supplementary dividend details
Amount per security in dollars and cents: $0.009706

Credits (Give Details): $0.0236

Record Date: 19 June, 2009
Payment Date: 30 June, 2009

[Share Investor]

MAINFREIGHT GROUP LIMITED

Financial result for the twelve months ended 31 March 2009 (Unaudited)

Highlights
- Revenue increase of 39% to a record $1.27 billion
- Net surplus before abnormals of $40.00 million, on par with prior year
- EBITDA performance a record $81.26 million, an increase of 9%
- Full year dividend of 18.5 cents per share, in line with the previous year.

Commentary
The Mainfreight Group is pleased to report a net surplus after taxation but before abnormals of $40.00 million for the twelve months of the 2009 financial year. This is on par with the previous year’s record of $40.81 million.

Total revenue (sales) increased by 38.8% to $1,265.58 million, from $911.72 million last year (excluding foreign exchange, this represents an increase of 28.8%). Organic growth, excluding foreign exchange and acquisitions saw a 5.5% improvement.

EBITDA improved 9.3% to $81.26 million (excluding foreign exchange this increase reduced to 4.3%).

Net surplus after abnormals reduced to $35.48 million. Of these abnormals, $4.12 million were provisions for leases surplus to our requirements.

This is a significant achievement in the current economic climate and has required a great deal of effort and sacrifice on the part of our team worldwide. Set the challenge of growing sales, maintaining quality, and delivering more freight than ever with reduced team numbers, our people have also sacrificed annual salary reviews and bonuses this year. Team bonuses, while discretionary, have long been an integral part of our Mainfreight culture and accounted for $9.02 million in pre-tax profit for the prior year.

These past twelve months have seen mixed fortunes for Mainfreight. We have continued to find growth across all our markets, however in the second half of the financial year our results faltered as economies around the world slowed and freight volumes deteriorated.

Trading into the first quarter of our new financial year continues the trend seen in our second half. With this deterioration in volumes a number of initiatives have been put in place to protect our position through 2009 and beyond:

- Since September 2008 we have ceased hiring or replacing (where possible) people across all operations. Natural attrition has seen a decline in our team numbers by approximately 250 people.

- Capital expenditure has been reduced across all sectors including placing on hold property development of $59.55 million.

- Surplus leases have been exited, particularly warehouses in Australia and New Zealand, incurring a one-off cost of $4.12 million after tax in this year’s result.

- A strong focus is underway by branch management and their teams to reduce costs and to improve margins, particularly in the areas of pick-up, delivery and linehaul.

Our targeted sales approach in every market has delivered increased market share while maintaining an emphasis on existing customer retention. Sales revenues from outside New Zealand were 68.1% of the total, and will continue to grow in significance.

Divisional Performance (all figures in NZ dollars)
New Zealand Our home base has weathered the tougher economic conditions satisfactorily.

Our Domestic operations saw EBITDA improve by 11.2% to $41.55 million on revenue growth of 4.8% to $294.81 million.
During the year our New Zealand team continued to build on core strengths through our broad network coverage, warehousing investment, and the ability to deliver logistical services better than our competitors. This remains a key driver for increasing sales.

In our International operations we have continued to see revenues increase, up 4.2% to $108.30 million. EBITDA declined 0.4% to $4.90 million as margins and rate levels, particularly in seafreight, remain suppressed compared to previous years with reduced volumes across trade lanes that are over-tonnaged with shipping capacity.

The opening of our new airfreight facility in Auckland has been a significant milestone for our team and customers. The purpose-built temperature controlled loading areas handle New Zealand exports of flowers, seafood, horticulture and meat to markets across the world. As recent currency adjustments assist New Zealand’s exporters, so we see corresponding growth in this market.

Australia
Our operations in Australia have performed reasonably well in what is a difficult economic climate. Import volumes declined steadily through the year as retailers reduced stock holdings, particularly from Asian suppliers, our largest trade lane internationally.

Domestically our revenues increased 23.2% to $183.20 million. Excluding foreign exchange this is an improvement of 15.7%. EBITDA declined 39.1% to $7.22 million; excluding foreign exchange a decrease of 42.8%.

While our market share continued to improve, volumes and consignment size deteriorated, particularly in the second half of the year, with margins and selling rates adversely affected. With the volume decline, further rationalisation in our Logistics sector saw a consolidation of facilities from eleven warehouses to seven. This has provided for better utilization and improved customer service.

Internationally our revenues increased 44.5% to $209.44 million assisted by the acquisition of Halford International. Excluding foreign exchange the improvement is 35.7%. EBITDA declined 8.9% to $7.10 million as additional costs were incurred with the acquisition and against an environment of declining freight rates. Disappointingly the merger of Halford’s operations, technology and people has been more protracted than anticipated, slowing the expected financial returns. Full integration will be completed by August 2009.

USA
Our American operations span a range of services through the two divisions we now have operating. Mainfreight, our latest acquisition, provides retail freight forwarding across the logistics supply chain for both international and domestic requirements. CaroTrans is our neutral NVOCC seafreight wholesale operation providing consolidation services for LCL and FCL freight carried internationally to and from North America.

Mainfreight USA has now traded some 18 months under our ownership. In the past 12 months, revenues were $265.78 million and EBITDA reached $4.24 million. These results are well below our expectations and are poor at best.

During our period of ownership we have identified a number of shortcomings in the business which we are addressing. Mainfreight Group culture and operating disciplines have been introduced to all of the USA operations, including a stronger branch management focus, the introduction of our owner-driver model for pick-up and delivery, and a more rigorous approach to both fixed and variable cost management.

Our “Cargowise” technology platform was introduced to the business in April 2009 to replace the redundant, inefficient system inherited through the acquisition process.

Domestic volumes have been impacted by current trading conditions and are below our expectations.

Measures to address this include the launch of new services to Canada, the creation of a Government services division which has achieved certified status, and the nationalisation of our fledgling FTL (full truck load) division, all of which are expected to assist our sales strategy for stronger growth.

CaroTrans’ performance has continued to improve throughout the year with revenues improving to $178.23 million, an increase of 43.1% (excluding foreign exchange, an increase of 22.5%). EBITDA increased to $13.63 million, an improvement of 75.0% (excluding foreign exchange a 49.8% improvement).

CaroTrans’ financial performance has been very satisfactory. This success saw us launch the brand and operations in the other markets where we have a presence: Asia, Australia and New Zealand. While this set up has been successful, revenue growth and profitability outside North America has been below our expectations.

International shipping tonnage has declined and is likely to be depressed for some time to come. As a result shippers have fewer orders and those orders are smaller in size, increasing the need for consolidation services. CaroTrans is well positioned to take advantage of these market conditions.

Asia
Our full ownership of the Asian business has now been in place for almost two years. During this period we have been able to develop the business to cover more trade lanes, install our international operating system “Cargowise”, establish CaroTrans and develop a flourishing airfreight product.

While Asia has certainly borne the brunt of the global recession, with exports of manufactured products substantially reduced, our own operations have managed to continue to increase revenue, up 22.2% excluding foreign exchange to $25.82 million. EBITDA declined slightly to $2.62 million as additional costs were incurred in developing our capability throughout China.

We are well positioned to continue the growth of our business in this region and it remains a significant beachhead for our global development in the years to come.

Carbon Emissions
Mainfreight has always attempted to reduce the environmental impact of its operations. Our sustainability initiatives have often resulted in reduced costs; so the bottom line and the environment are both winners.

Real or not, climate change is fast becoming a core strategic issue for businesses everywhere. For Mainfreight, it begins with accepting that our business is based on an activity that generates carbon emissions and then taking responsibility to reduce those emissions over time; without negatively impacting on our competitiveness.

Last year we commenced a programme of measuring the carbon emissions in our business in New Zealand with a view to extending this measurement to other countries where we have a presence, and to reducing our emissions per tonne of freight moved. We made this information available to the public through our annual report and other avenues.

This year however, we have been faced with significantly increased costs and bureaucracy from the Government departments which oversee carbon emissions, and while as a business we will continue our programme of measurement and reduction to support our long-held policies of environmental responsibility, we have chosen not to incur the substantial costs involved in the audit and certification processes that are now demanded. We believe that incurring these costs would not provide a measurable benefit and therefore would not be in the best interests of our shareholders.

Group Operating Cash Flows
Operating cash flows were $63.07 million, an improvement of $22.37 million on the prior year due to substantially improved debtor collections.

During the year net capital expenditure totalled $40.87 million. Property development accounted for $23.51 million of this.

Net debt increased to $115.28 million from $79.89 million due to the Halford acquisition and the US dollar loan currency fluctuations.
Dividends
The Directors have approved a final dividend of 10 cents per share fully imputed at the 30% company tax rate, with the books closing on 17 July 2009; payment will be made on 24 July 2009. This takes the full dividend for the year to 18.5 cents per share.

Outlook
The uncertain economic environment has seen reduced volumes across all sectors of the logistics industry. Mainfreight has not been immune to the effects of this during early 2009. We expect to see volumes continue to decline for the immediate future and this will affect our profitability in the coming year.

Our response is to manage our business through very strong margin and cost focused branch management, coupled with sales strategies aimed at increasing market share across all sectors. Our competitive advantage of quality supply chain logistics services will continue to provide growth. Our style and strong people based culture will be important to manage the process.

Against the possibility of declining revenues in the current economic climate, we remain focused on growing our logistics network around the world. This has resulted in an expanded customer base, leaving us well positioned in all our markets to take advantage of any upturn in the economic cycle.

Our team of very special people has delivered a satisfactory result against the odds in this past year, at considerable personal sacrifice, and yet they remain passionate in all that Mainfreight stands for and aspires to.

For further information, please contact Don Braid, Group Managing Director,
telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com.

[Share Investor]

MAY 28 2009
MEDIA RELEASE

Listed stamp and collectables dealer and auction house, Mowbray Collectables, today reported an operating loss (after tax and share of associates’ net deficit) for the year ended 31 March 2009 of $238,000, compared with last year’s surplus of $234,000.

The group’s core business activities in New Zealand and the World Wide Fund for Nature Stamp Program in Australia all traded profitably and within expectations. The Melbourne office of Mowbrays Australia traded poorly, and was a major contributor to the group deficit.

Managing Director, John Mowbray, said he was pleased that the core businesses of philately and coins had met trading expectations and noted there were strong growth trends in auction turnovers and yields in those markets.

Australian associate company, Bonhams & Goodman, has continued its expansion into Melbourne with the purchase of auction house Leonard Joels. This was a significant investment that followed the 2007 opening of a Melbourne auction location. Bonhams & Goodman is close to being the leading auction house in Australia but has yet to produce the cash rewards for the Mowbray Collectables group.

2008-09 was the first full year of trading for Mowbrays Australia after the re-branding from Stanley Gibbons Australia. The stamp auction market in Australia has been challenging and this was most noticeable in the second and third quarters of the year. The final quarter’s trading was satisfactory.

Australasian art auction markets weakened following the global economic downturn in 2008. However, some stability appears to be returning as experienced in 2009 in both Australia and New Zealand. The heady days of the art market seem to have disappeared for the time being with higher-priced art being harder to source and lacking the competitive bidding of the past few years. The lower end of the art auction market is easier.

Since balance date, sales in all our core divisions are strong.

In view of the result and the present economic environment, the directors have resolved not to pay a dividend at this time.

[Share Investor]

Life Pharmacy Limited full year result

Results for announcement to the market

Reporting Period 12 months to 31 March 2009
Previous Reporting Period 12 months to 31 March 2008

Amount (000s) Percentage change
Revenue from ordinary activities $7238 +21.3%
Profit from ordinary activities after tax attributable to security holders $61 +1,034.4%
Net profit attributable to security holders $61 +1,034.4%

Dividend No dividend has been declared or is payable.

Auckland, 29 May 2009 – Life Pharmacy Limited (NZX: LPL) today announced a profit of $61,000 for the twelve months to 31 March 2009, an improvement of $631,000 on the corresponding period last year (2008: $570,000 loss). This represents a turnaround from losses sustained in the previous two full year reporting periods.

The profit after tax of $61,000 (2008: $570,000 loss) includes revenue from associate earnings of $1,069,000 (2008: $426,000). This increase of 151% was driven by a much stronger and more focused marketing programme and includes stronger benefits from the Life Pharmacy ‘Living Card’ loyalty programme that is now in its third year and has in the order of 250,000 members.

“Despite the current economic environment, both retail and dispensary sales have been strong across all Life Pharmacy stores, including franchisees,” said Life Pharmacy Chairman, Liz Coutts. “Total sales growth was in excess of 5%, with comparable store growth around half of this rate. This represents a very commendable retail performance in an environment that continues to be challenging. We are fortunate that beauty products are often regarded as affordable luxuries, a category which traditionally performs well even during recessionary periods, creating opportunities that our marketing team has been able to take advantage of.”

The Company completed the acquisition of Care Chemist Services Limited, franchisor to 8 Care Chemist branded community pharmacies in the greater Auckland area, on 30th May 2008. Since the integration of this business into LPL the Care Chemist brand has continued to grow with a further 13 franchisees joining in its first year as part of the LPL Group.

“The acquisition of Care Chemist demonstrates LPL’s willingness to be a strong and active player in the health sector as well as the beauty sector, where we have a well-established position,” said Ms Coutts. “We will continue to focus on growth opportunities across the entire Health, Beauty and Wellness sector, as we believe the role of the pharmacist in the community for providing valued advice to customers represents a key strategic advantage for us.”

During the year, the company undertook a renounceable rights issue, offering existing shareholders three ordinary shares for every two held. The shares were issued for $0.40, with $0.20 per share payable on allotment and the balance twelve months later.

Under the rights issue the company raised in excess of $11.6 million providing considerable strength to LPL’s balance sheet. “As a consequence the Company is now well placed to make further investments in the health, beauty and wellness sector, in an environment where capital raising and confidence in future growth has been at its lowest in a number of years” commented Ms Coutts.

As part of the rights issue, LPL’s cornerstone investor, LPL Trustee Limited, which is backed by Andrew Bagnall, exercised its rights under the option agreement granted to it on 26 July 2007 and 27,068,975 partly paid ordinary shares were issued to this entity. As a result of this LPL Trustee Limited’s total shareholding is now 50.01%.

“Andrew’s enthusiasm and continued investment in Life Pharmacy has been welcomed not only by the Life Pharmacy Board but also by existing shareholder pharmacists and franchisees. Andrew’s considerable experience, vision and plans for future growth, along with his commitment to the company, provide a very strong platform for Life Pharmacy in the future,” said Ms Coutts.
About Life Pharmacy Life Pharmacy Limited (LPL) is New Zealand’s only listed Retail Pharmacy Group and comprises the Life Pharmacy, Life Metro, Life Outlet and Care Chemist brands. In total, at 29th May 2009, the LPL Group includes 50 retail outlets operating throughout New Zealand comprising 29 Life branded stores.

Contacts:
Liz Coutts Chairman, Life Pharmacy Limited +64 21 892 220 Allan Botica Botica Butler Raudon Partners +64 21 400 500 allanb@botica.co.nz