Punakaiki Fund September 2017 Interim Accounts

We have released our September 2017 interim accounts, which are the half-year financial snapshot. These show that the assets of Punakaiki Fund were $31.56 million at the end of the quarter, of which $29.25 million was investments.

The accounts show a profit of $1.145 million for the half-year, but we believe the more important piece of reading is the statement of cash flows.  This shows that net cash used in operating activities was $213,000, which represents just 0.67% of total assets, or 1.35% on an annualised basis.

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Linewize Sells to ASX Listed Family Zone

We are delighted to announce the sale of Linewize to Family Zone Limited (FZO.AX). Family Zone have released a comprehensive announcement to the ASX.

Why the combination works
There was almost immediate agreement, at the start of negotiations, that the combination of Linewize and Family Zone was good for both businesses. Linewize provides world-leading technology for firewall, filtering and classroom internet management tools, and has 260 New Zealand schools on board. Family Zone has a disruptive business model (selling on-device filtering software to parents via school mandates) and is growing very quickly in Australia, and can rapidly expand the use of Linewize’s technology. They have also signed deals with large telecommunications providers. The combination is a strong sales and marketing engine on top of some excellent technology, and better geographic coverage for all.  

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NZ Retail and Australian Wholesale Offers

We have upgraded the Punakaiki Fund website to reflect the content of our two offers.

The New Zealand Offer is lodged, and will be available to accept applications from November 9th. In the meantime the Product Disclosure Statement makes for good reading, and is the only pathway to make a decision about investing. We will accept applications directly, through Snowball Effect and wholesale distribution channels, both from the 9th.

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Punakaiki Fund proposed offer to retail investors

Punakaiki Fund Limited is investigating making an offer to retail investors in New Zealand, through a Product Disclosure Statement (PDS), which is the prescribed approach under the Financial Markets Conduct Act of 2013. 

We’ve seen a little press about our proposed offer to raise money from the public. As this is a regulated offer under the FMCA 2013, we do need to be careful about what we say and do.

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Punakaiki Fund invests in NZ Artesian Water

New Investment: NZ Artesian Water

We’ve seen plenty of headlines recently about offshore companies bottling our water and making fortunes. So when I met Nelson-based Kiwis Andrew Strang and Wayne Herring through a Better by Capital engagement, I was eager to see how their New Zealand Artesian Water business (NZAW) was progressing. The answer was “very well”, and that they were actively looking for funds to grow.

We are very impressed by their supply strategy – working closely with the Tasman District Council – their product and their plant, as well as their plans for expansion. Their premium alkaline water, E’Stel, comes in elegantly designed bottles and also in boxes, and is mainly sold into China, although NZAW has supply contracts across the world. They have also developed a new blended-water product for China aimed at mothers using infant formula. For now their primary challenge appears to be scaling the business to deliver on sales demand. Investors living in or visiting the South Island can help with that demand – E’Stel is available at selected retailers there.

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