Marsden Maritime Holdings Announces Results for FY23

Marsden Maritime Holdings Announces Result for FY23 Key financials: o Business Park and Marina Operations revenue $11.3m, up 29% from $8.7m last year o Net profit after tax before valuation movements $8.2m down from $9.1m last year o Investment property valuation downward movement of $0.3m partly reversing the previous year's significant upwards movement of $3.9m. o Earnings from joint venture interest in Northport $8.1m down 3.5% from $8.4m last year o Northport volumes o Bulk 2.6m t down from 2.9m t last year o Logs 2.0m t down from 2.3m t last year o Container volumes were 16,809 TEU down from 19,142 TEU last year Marsden Maritime Holdings Ltd (NZX:MMH) has announced its annual result for the year ended 30 June 2023. Chief Executive Rosie Mercer said, "While we're delighted to report record revenue, as signalled in the trading update issued in July 2023, MMH's reported after-tax profit was impacted by higher interest costs and the effects of Cyclone Gabrielle reducing log and container volumes through our Northport joint venture. The 29% growth in the Business Park and Marina Operations revenue stream went someway to offsetting the 9% reduction in net profit after tax before Investment Property revaluations and fair value movements which measures our overall operational performance". Financial performance The Company's net profit after tax (excluding revaluation of investment property and fair value movements) of $8.2m, which was down from last year's $9.1m but in line with the guidance provided. Revenue from the company's Business Park and Marina Operations has continued to grow, totalling $11.3m, up 29% from $8.7m last year. Underlying earnings* from Business Park and Marina Operations related activity increased by 7% to $1.6m (from $1.5m in 2022). Lease revenue saw a 32% uplift to $4.8m, from $3.7m in the previous year. This improvement was driven by the completion of commercial and industrial developments, including the Nutrinza bulk storage facility, and strong demand resulting in high occupancy rates for these new assets. Marina revenue (including Boatyard and goods sold) was $6.1m, up 26% from $4.8m. The Marina continues to receive positive feedback in relation to the quality of the hardstand and the services available. NPAT after revaluation of investment property and fair value movements of ($0.2m) was $7.9m (2022: $13.1m- including a valuation movement of $3.8m). Northport and Cyclone Gabrielle The Northland economy was particularly hard hit by the impacts of Cyclone Gabrielle and this resulted in a reduction of over 12% in both log volumes and container numbers through Northport. As a result, earnings from MMH's joint venture interest in Northport Ltd totalled $8.1m, which is down 3.5% from last year's $8.4m. Dividend MMH's dividend policy uses a guideline of 70% of net profit after tax before asset revaluations and fair value movements being distributed as dividends. In line with this policy, the company will pay a fully imputed final dividend of 7.5 cents per share on 29 September 2023. This will bring the total dividend distribution for the year to 13.5 cents per share, down 2.5 cents from last year. Outlook Chief Executive Rosie Mercer said, "Our focus this year has been on getting the foundations right. We are confident we have the right team in place capable of delivering on our strategy and positioning MMH to take advantage of the significant growth opportunities ahead. "We've also done a deep dive to understand the strengths of our assets and identified some areas to address. Our focus for the next 12 months is continuing to grow revenue while concurrently focussing on sound asset maintenance and management, which will enable us to get into a more sustainable expenditure pattern, improve our level of service to customers and generate higher shareholder returns over the long term." Chairman Murray Jagger said, "The 2023 financial year has seen Marsden Maritime Holdings focus on getting the business on the right path for a truly sustainable future. The Board and Management are pleased with the overall performance of the business under challenging conditions and we believe MMH is well positioned to leverage the opportunities coming our way. As we emerge from Covid and the cyclone recovery, the economic outlook right across New Zealand shows more than ever the importance of businesses like ours to drive growth, support the community and help the region get back on track. A key part of this is the leadership role we must play in influencing the development and delivery of strategic road and rail infrastructure assets for the region. It is pleasing to see the design phase of the Marsden Rail Spur commencing and there are cross party support for critical roading infrastructure connections for the region with Auckland and New Zealand. We are confident our strong commercial focus will enable us to deliver long term prosperity for our stakeholders and the region." ENDS For more information, please contact: Vidura Galpoththage Head of Finance E: vidura@marsdenmaritime.co.nz M: 021 0272 5450 * Underlying earnings is a non-GAAP measure of parent company financial performance that excludes interest expense, taxation, valuation movements and joint venture earnings End CA:00417035 For:MMH Type:FLLYR Time:2023-08-25 08:47:23