By ROSI DOVIVERATA
The overall performance of Kontiki Growth Fund’s (KGF) investee companies for the financial year 2012 was mixed.
In its 2012 Annual Report, one such investee, Oceanic Communications Limited recorded a revenue of $1.11m, an increase of 36.14 percent over the same period in 2011. Cost of sales increased correspondingly to $0.45m (2011: $0.22m) while operating expenses recorded a decrease of 42.21 to $0.57m.
A net profit of $0.04m was recorded by Oceanic. This compares with a net loss of $0.42m recorded in 2011 and was the first year the Group recorded a profit since its inception in 2005.
The annual report stated that this performance very much reflected that of Oceanic Communications Ltd which made a net profit after tax in 2012 of $0.03m.
The report said the Fund Manager voluntarily waived its management fee with effect from 1 January, 2012 until further notice. This was to assist the Fund as it continued to deal with a difficult business environment on the home front.
Furthermore, after protracted negotiations, Kontiki was able to sell its holdings in Bligh Water Shipping Limited (BWS) for $21,620.00. BWS had previously been written off in KGF’s books.
“Given the continued problems at BWS and a very tough operating environment for shipping, it was felt that the best course of action would be to divest KGF’s holding in BWS,” the report said.
The Fund’s Annual General Meetng will be held on May 21, 2013 at the Reserve Bank of Fiji building, Tower 11.