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Fiji’s equity-investment management company Kontiki Growth Fund now has its eyes set on exploring new “revenue streams” as it aims to boost the performance of its six investment portfolios.
While not much has been revealed on what these “revenue streams” would be, the Fund revealed that it was now in talks with potential investors for some of its investment products.
At its annual general meeting in Suva yesterday, it was revealed that the Fund recorded a net loss of $293,146 for the 2008 financial year end - a 37 per cent improvement over 2007; whereas the group recorded a net loss of $292,161 – up 41 per cent over 2007.
Shareholders were also informed that no dividends would be paid out this year because of the loss status.
Kontiki boss Griffon Emose while highlighting the performance of the various investment portfolios admitted it had been a tough trading year for Kontiki citing the difficult economic climate experienced in Fiji and yet unfolding abroad.
He said the net losses recorded was attributed to two factors: one being the write down of the carry value of investment in KGF; and second the write down in future income tax benefit for the Fund.
One of Kontiki’s investment product – Savusavu Harbourside, the developer of upmarket mixed complex in Savusavu, which Kontiki invested $250,000 for a 17 per cent equity stake.
Emose said the Savusavu Harbourside investment was one with most problems.
“Since the coup, presales have been lost and investors have also cancelled their leases,” he said, adding: “The property market has been crushed by the difficult climate in Fiji, and the global financial crisis”.
Emose said KGF was now in talks with new potential investors on new proposals for the project.
Another investment, Oceanic Communications, a full blown communications agency specialised in online, offline marketing and website development.
Emose said Oceanic Communications recorded decreased sales of $530,000, down 28 per cent on 2007, subsequently recording a net loss of $51,000.
Unwired Fiji, on the other hand, recorded a net loss of $569,000.
He said Unwired now has a new shareholder, Data Nets with plans on track to implement next-generation Motorola WiMAX network, with expansions planned for the West.
Kontiki’s fourth investment – Halabe Investments, a real estate development and investment company, recorded a net profit of $756,381.
While Emose said this was not a good sector to be in at present, added Halabe Investments looked promising for the long term with revenue anticipated from its 100 occupancy rate, which has been consistent since 2006.
For inter-island shipping company Bligh Water Shipping, it recorded a loss of $1.19 million, reflected in repair bills and fuel price increases.
Emose said the company was now geared towards rebuilding engines and tighter engineering controls, keeping in mind tight competitions and the status of the economy.
Water bottling and packaging company Pleass Beverage Company was showing signs of progress.
Emose said Pleass recorded sales of $4.84 million, up 20 per cent on 2007.
He said the company was currently pursuing expansion opportunities.
