KEY POINTS:
A decent slug of 42 Below has helped listed investment company Viking Capital post a maiden profit.
Viking Capital, which was set up by former Dorchester Pacific managing director Brent King, Grant Baker and Sir William Birch made a net profit for the 10 months ending March 31 of $2.7 million on revenue of $3.5 million.
In November, Viking accepted a $4.5 million offer from Bacardi to buy 5.8 million shares in 42 Below for 77c each, compared with an average cost price of 50c at the time of Viking's listing - a profit of about $1.6 million.
The company has raised nearly $20 million and looked at more than 100 investment opportunities, King said. "It is hard to keep up with the opportunities we're being presented with at the moment."
However, it had been difficult to compete with the large capital flows in the market during the last year.
"I do think the market's still a little bit over-inflated and as a result you say 'I quite like that business but at the price it's just not right at the moment'."
Shares in Viking closed yesterday at 30c , compared with the initial public offering price last June of 25c.
The company has bought 17.5 per cent of ICP Biotechnology, a stake in finance company Dorchester Pacific and all of boutique research and funds management company Investment Research Group.
Investment Research was bought in March for $2.5 million. The data division was sold in April to the New Zealand Exchange for $1.4 million.
Not all investments have been trouble free - ICP Biotechnology last month reversed a projected $6.1 million trading profit for the year ending June 30 into an expected trading loss of about $8 million.
"Unfortunately I've never been in a position where life has always gone from the bottom straight to the top," King said. "There's always been a rollercoaster through there."
ICP had a high cost structure with too much money spent before sales came in, he said.
"But that's only a matter of restructure and we hope that that matter will be resolved in the next couple of weeks."
Viking did not provide a forecast but the objective was growth.
