Sandon Capital Investments (SNC) Investor presentation summary

Key financial highlights

• Shares offer a 7.7% yield (10.3% grossed up for franking) and trade at a 10.1% discount to NTA as of August 2026.

• Profits reserves and franking balance support current dividends for approximately 3.6 years.

• Fully franked monthly dividends of 0.47cps are announced through December 2026, providing regular cash flow.

• SNC's win/loss ratio since September 2025 is 57%/43%, reflecting recent challenging performance but positive long-term evidence.

• SNC trades at a higher yield and larger discount compared to other monthly income LICs.

Portfolio performance and composition

• FY27 YTD return is 14.1%, with a 3-year annualized return of 9.0%; performance since September 2025 was impacted by unrealized losses and a rare permanent impairment from QPM Energy.

• Portfolio is diversified across sectors, with top holdings in Fleetwood Ltd (16%), COG Financial Services (12%), and BCI Minerals (9%).

• Most portfolio companies have strong balance sheets and are positioned to withstand economic headwinds.

• Turnaround opportunities have been realized through board and management changes at select companies.

Notable portfolio company updates

• QPM Energy's administration in July 2026 resulted in a 7% portfolio impact; position-sizing discipline has been tightened for investments with both financing and regulatory risks.

• Fleetwood Ltd acquired Red Dog Village for $20m, with expected annual earnings contribution of $10–20m; maintains a 100% dividend payout ratio.

• COG Financial Services reported 9% revenue growth and 27% operating profit per share growth, with strong performance in salary packaging.

• BCI Minerals' Mardie Salt project is nearing completion, with first salt shipment expected in 2027 and potential for future product diversification.

• Carbon Conscious Investments manages large-scale carbon projects with long-term contracts and expects further fully franked dividends.