Quayside Holdings Limited Analysis

Overview

Quayside Holdings Limited (QHL) and its wholly owned subsidiary, Quayside Securities Limited (QSL), were established in July 1991. The primary objectives of the Group were to acquire at valuation the shares in the Port of Tauranga Limited (POTL), then held by the Bay of Plenty Regional Council (Council) and, thereafter, to manage the shareholding in the interests of the Council.

A further, wholly owned, subsidiary Quayside Properties Limited (QPL) was established in October 2003. The purpose of QPL is direct investment in property.

On the 7th March 2008 an offer for Perpetual Preference Shares closed fully subscribed with the total number on issue being 200,000,000 which were sold at $1 each. The shares commenced trading under the code QHLHA on the NZDX on the 13 March 2008.

Performance

The following information was extracted from Quayside Holdings Limited's half year results, released 07 March 2025:

Quayside Holdings Limited and subsidiaries (“the Group”) is pleased to report its half year results for the year ending 31 December 2024.

Quayside Holdings Limited is pleased to present the results for the interim period ending 31 December 2024. Group Net Profit after Tax (NPAT) for the six months was $68.2 million (2023: $44.9 million), an increase of 51.9%. The performance of the Group is comprised of the result from the ‘Port of Tauranga Group’ (Port segment) and the ‘Quayside Group’ (Investing segment) as follows:

Port of Tauranga Group Performance

Port of Tauranga Group profitability increased for the first six months of the 2024 financial year. Net Profit After Tax for the six months to December 2024 was $60.2 million, a 27.4% increase on the same period versus the previous year. Operating revenue increased 12.5% to $225.0 million mainly due the increase in container terminal revenue (driven by both improved volumes and tariffs). Operating expenses increased 7.2% year-over-year impacted by employee benefit expenses. Share of profits from equity accounted investees is $3.2 million, in line with the previous year.

The Port has declared as a subsequent event, in its 31 December 2024 interim accounts, a fully imputed interim dividend of 7.0 cents per share, providing Quayside for future cash flow of $25.8 million.

Quayside Group Performance

The Quayside Group (refer to the “Investing” segment identified in Note 5), reported a net profit after tax of $8.0 million (2023: $2.3 million loss) for the first half of the year.

The performance is mainly driven by $21.5 million of “other income/gains” – including dividend income and net unrealised gains (2023: $4.8 million) netted off by the $10.5 million impact in overhang write-off included in trading and other expenses (2023: $5.6 million). A major contributor to the Quayside Group’s unrealised portfolio performance is the listed assets portfolio, with $12.9 million positive impact. Managed private equity is the second contributor with $5.2 million in gains.

The Quayside Group paid dividends to Perpetual Preference Shareholders during the period of $4.7 million in accordance with its prospectus. Net dividends paid during the period to the Bay of Plenty Regional Council were $23.5 million (2023: $22.5 million) in line with the current Statement of Intent.