Marsden Maritime Holdings Limited Analysis

Overview

Marsden Maritime Holdings Limited (previously known as Northland Port Corporation (NZ) Limited), was formed in 1988 following deregulation of harbour boards.

The business was redefined in subsequent years, including the development of a new port facility at Marsden Point in a 50/50 joint venture arrangement (Northport) with the Port of Tauranga.

The company listed in October 1992 with a public offer of 10 million shares at $1.25.

On 25 July 2014 the company announced a name and code change from Northland Port Corporation (NZ) Limited ("NTH") to Marsden Maritime Holdings Limited ("MMH"). The change was effective on 4 August 2014.

MMH has been granted Listing with a 'Non-Standard' ("NS") designation. This designation was granted because under the Port Companies Act 1988, changes to MMH's Constitution must be approved by the Minister of Transport. For further information, please see the the Port Companies Act 1988 which is publicly available at www.legislation.govt.nz.

Performance

The following information was extracted from Marsden Maritime Holding Limited's Full Year results, released on 23 August 2024:

Marsden Maritime Holdings Announces Result for FY24

Key financials:

• Parent company EBIT increased 9% to a record $1.8m due to solid property lease profit growth (+4%) and exceptional marina profit growth (+23%)
• Earnings from joint venture interest in Northport Ltd $7.9m down 2.3% due to one-off tax legislation changes at Northport
• Finance expenses increased $0.2m over last year all due to higher interest rates

Marsden Maritime Holdings Ltd (NZX:MMH) has announced its annual result for the year ended 30 June 2024.

Chief Executive Rosie Mercer said, “We are pleased to have delivered strong underlying growth despite challenging economic conditions and have continued to build the solid foundations for future growth in line with the strategic aspirations as set out in our Masterplan.”

“Overall, our focus on the long-term drivers of productivity has enabled us to remain resilient and continue to invest in the transformation of Northland’s economy.”

Financial performance

The Company’s net profit after tax of $4.5m was impacted by non-cash fair value adjustments to investment properties partly driven by changed valuation yields, and a one-off non-cash tax adjustment arising from the change in tax deductibility of commercial buildings. However, the key drivers of long-term growth across the business have continued to deliver strongly, reflecting the Company’s resilience and continued commitment to the region.

The Marsden Cove Marina and Boatyard has continued to deliver strong growth in revenue and was up from $2.8m last financial year to $3.3m, reflecting a 14.8% increase. It has maintained high occupancy rates, buoyed by new commercial clients, international visitors and longer-term stays.

MMH increased revenue across its industrial and commercial property by 6.8% to $5.2m, compared with the financial year to June 2023. This reflects a high level of renewal across MMH’s existing tenants, as well as growth. Seventeen existing tenants renewed their leases for a further term and 12 new tenants signed leases in the year to June 2024.