CVC (CVC) H2 2024 earnings summary

Executive summary

• CVC Limited is an ASX-listed investment company focused on high-conviction real estate opportunities, with a strategy to transition its investment book solely to property over time.

• The company emphasizes capital protection, value creation through planning and development, and risk management, supported by an experienced management team.

Financial highlights

• Reported net loss after tax attributable to shareholders of $2.5m for FY24, compared to a profit of $13.4m in FY23, mainly due to lack of asset sales and statutory accounting for inventory.

• Net assets per share at 30 June 2024 were $1.49, excluding an estimated $1.13 per share in non-statutory asset value uplift from independent property valuations.

• Cash and equivalents at period end totaled $14.0m; fair value of corporate note was $30.3m.

• Property investments contributed $6.7m (down from $24.7m in FY23), while non-property investments contributed a loss of $2.9m (down from a $5.8m gain in FY23).

Outlook and guidance

• Focus remains on unlocking value in the direct property portfolio, with significant upside over current book value.

• Key objectives for FY25 include formalizing rezoning outcomes for major NSW projects (Liverpool, Marsden Park North), achieving planning milestones for Officer South and Donnybrook, and completing subdivision works at Burleigh Waters.

• Gradual exit from non-property investments and ongoing management of property-backed lending portfolio.

• Aim to close the gap between share price and real asset value.