By BRYAN GAYNOR
It hasn't been a great year for equity investors, but a few will be popping the champagne corks over the New Year because of their success on the New Zealand sharemarket. Most of them have been rewarded for their hard work and sound business strategies.
The following is a
selection of some of the big individual winners on the NZSE this year.
Rod Duke
$178 million
This is the second year running that Rod Duke, Briscoe Group's managing director, has topped the Big Winners list.
In September 1988 Duke accepted the position of managing director of the ailing Briscoe Group. His mandate was to return the company to profitability and prepare it for sale.
In January 1990 he bought the struggling company and after a complex recapitalisation invested a mere $100 in Briscoe.
Through hard work and a clear and focused strategy Duke has turned Briscoe into a successful retailer, and last year the company had a 1,700,000-for-one share split before its successful public offering.
Duke ended up with 170 million shares. He sold 12.5 million to associates for $1 each, the same price as the 40 million shares issued to the public, and still holds 157.5 million shares.
Last year Duke turned his $100 into $276 million, and this year he added another $178 million as Briscoe's share price rose from $1.67 to $2.80.
Duke has converted $100 into $453,500,000, but can he top the Big Winners list for the third year running in 2003?
Stephen Tindall
$54 million
It seems that every year is a good one for Stephen Tindall. This year his 27.6 per cent stake in The Warehouse rose in value from $555 million to $609 million as the company benefited from buoyant retail conditions and the New Zealand dollar appreciation.
Next year's performance will depend heavily upon results from The Warehouse's Australian operations.
Tindall's charitable organisation, the Tindall Foundation, also had a good year as the value of its 21.7 per cent holding in The Warehouse increased from $438 million to $480 million.
Tony Timpson & Grant Biel
$9 million each
Cavalier Corporation's two founders, Tony Timpson & Grant Biel, had another excellent year as the company went from strength to strength under managing director Alan James. Cavalier reported a 28 per cent increase in net earnings to $13.2 million for the June year, which was followed by a highly successful two-for-one share split.
Sir Michael Fay & David Richwhite
$41 million
Sir Michael Fay and David Richwhite made a fortunate decision when they bailed out of their 14.5 per cent Tranz Rail stake this year at $3.60 a share.
These shares are now worth $41 million less after adjusting for the recent rights issue.
Fay & Richwhite's entry cost to Tranz Rail was approximately 20c a share, after adjusting for a $100 million capital repayment before the railway company's stock exchange listing.
Eric Watson
$38 million
After his disappointing flirtation with the IT sector, Eric Watson had a much better year on the NZ sharemarket.
Pacific Retail's share price rose from $2.24 to $2.84 and the company had a 21-for-100 bonus share issue. The value of Watson's 73 per cent holding in the rapidly expanding retail group increased by $44 million, from $83 to $127 million.
But he lost $6 million on his 53 per cent Eldercare holding as its share price fell from 24c to 18c.
Watson won his punch-up with fellow Kiwi Russell Crowe in a London nightspot, but it is probably touch and go which of them made the most money this year.
Michael & Christine Hill
$22 million
Michael and Christine Hill continue their wonderful performance that has stretched back over two decades.
Michael Hill International had another excellent year and it now has 77 stores in Australia and 43 in New Zealand and two new stores have been opened in British Columbia, Canada.
The Hills' daughter, Emma, is running the Canadian operations and mum and dad will be hoping that she can emulate their performance in Australasia.
The company's share price rose from $4.90 to $6.00 as several institutions increased their shareholding above 5 per cent.
Hugh Green
$12 million
Hugh Green, the wily Irishman, had a good year but it could have been better. His 30.3 per cent Hellaby and 10 per cent Dorchester Pacific holdings produced positive returns, but a 10 per cent interest in Affco had a negative return.
Overall Green ended up $12 million ahead at the end of the year.
But earlier in the year Green had an agreement to sell his Affco holding to Talleys Fisheries at 38c a share that was subject to shareholder approval. Peter Spencer voted against the deal and reduced Green's sharemarket profit for the year from $17 to $12 million.
George Gould
$6 million
George Gould, the Christchurch businessman, had a big winner with his 24.5 per cent holding in Designer Textiles. The Otara-based company was one of the best performers of the year as its share price rose steadily from 40c to 105c and Gould made nearly $6 million in the process.
Gould started buying into Designer Textiles in late October 2000 and he bought 8.9 million shares at an average price of 28.4c a share.
He was appointed to the board two months later and became chairman in March last year. Subsequently the company has made a dramatic recovery and has been the preferred stock of several sharebrokers.
Gould also played a leading role in the merger of Pyne Gould Guinness and Reid Farmers, and is chief executive of the new company.
His family company, Pyne Gould Corporation, has a controlling interest in the merged group.
However, the listed stock and station group had a less successful year on the sharemarket than Designer Textiles because of the downturn in the rural sector.
Graeme Marsh
$4 million
Dunedin businessman Graeme Marsh is the largest shareholder in Scott Technology, one of the best performing companies this year. Its shares rose from $1.60 to $2.40 after a one-for-eight bonus issue in October.
Dr Michael Cullen
$517 million
It has been another excellent year on the sharemarket for the Finance Minister. The value of his Air New Zealand holding increased by $517 million to $1723 million, compared with his original investment of $885 million. Dr Cullen should have been voted fund manager of the year.
Based on Statistics New Zealand's population estimate of 3.96 million, each New Zealand resident is sitting on a profit of $212 since the original investment late last year.
This doesn't put us all in the Rod Duke class but a profit, no matter how small, is better than a loss.
* bgaynor@xtra.co.nz
By BRYAN GAYNOR
It hasn't been a great year for equity investors, but a few will be popping the champagne corks over the New Year because of their success on the New Zealand sharemarket. Most of them have been rewarded for their hard work and sound business strategies.
The following is a
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