ASX listed diversified investment company, CVC Limited (ASX: CVC) has released an investor presentation in which it has discussed half-year results for FY 2019.
For the half-year period, the company reported revenue of $39.2 million and Underlying NPAT loss of $4.9 million. As per the company’s report, the half-year results were significantly impacted by the decrease in the value of ASX listed equities during the global market correction in the second quarter of FY 2019. For the half-year period, the company reported gross revaluation loss on unsold listed equities of $16.7 million, which in prior years would have normally been allocated to reserves until sold. In the third quarter of FY 2019, the company has witnessed a recovery of $8.5 million in the value of the ASX listed share portfolio.
In its report, the company has also informed about the establishment and launch of the unlisted CVC Emerging Companies Fund, in partnership with Evans and Partners, which is focused on investing in growth and expansion stage companies, targeting a $50 - $100 million capital raising during the second half of FY 2019;
As at 31 December 2018, the company had a Net Tangible Assets of $188.4 million including net cash of $30.3 million.
CVS creates value through active management of large strategic holdings that are identified as undervalued, counter-cyclical or underperforming. The company utilises a range of value creation tools including options, capital raisings and underwriting where available.
As per CVC’s outlook, the NPAT for FY 2019 will be dependent on the performance of the ASX listed segment in the second half. Further, the company is expecting to pay a total dividend of 15 cents per share for FY 2019. In FY 2019, the company is targeting to increase funds under management by a further $100 million, including the launch of a minimum of two new products. The company is having an expectation of at least one substantial new listed or unlisted investment with an investment amount exceeding $10 million. The company is also planning to explore partnership opportunities with existing fund managers where investment/balance sheet support can deliver growth outcomes for the manager. The company is expecting that the planning outcomes and progression of developments will increase the underlying net asset value of the company.
Now, let’s have a glance at the company’s stock performance and the return it has posted in the last few months. The stock is trading at a price of $2.530, down by 3.435% during the day’s trade with a market capitalisation of ~$312.91 million as on 15 March 2019. The counter opened the day at $2.600 and reached the day’s high of $2.620 and touched a day’s low of $2.530 with a daily volume of ~ 30,879. The stock has provided a year till date return of -0.38% & also posted returns of -6.43% and 0.77% over the past six months, three-months period respectively. It had a 52-week high price of $2.900 and touched 52 weeks low of $2.230, with an average volume of ~11,047.
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