Ann: FY2019 Results Announcement and Investor Presentation, page-3

I agree that Carlisle is a good investment. I have not looked at any detail. I could not see what the contribution of Victory Park was in these results. It was such a large investment and the expectations were that it would generate $9.5m. There was a reference to an accrual of $3m but there was a reference to a $2m accrual at December so was the $2m paid or was the $3m inclusive of the $2 from December?

The things that caught attention were: the cost of running the corporate continues to increase at a level which reduces the leverage. This needs to be addressed as the management expense ratio is too high. If this business was in the hands of a PE firm it would be managed so much more efficiently. The write down in Seizert is worrying and indicates that the expectations for this business are negative with a further amount to pay the founder. This has been a destroyer of shareholder capital. The additional payment will add to another impairment in 2020. The Nereus investment has been on the market since November and still no buyers. This suggests no buyers or low offers. The notes in the release again highlight the USD25 million to be paid in two years. The net cash does not include the eventual payment of this so it is artificially inflated.

Based on the presentation showing net assets, interestingly not net intangible assets, the amount of cash and the share price at 30 June, it looks like an invitation for someone to make an offer.