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- Release Date: 01/03/13 18:46
- Summary: HALFYR: PGC: Half Year Results for period ended 31 Dec 2012
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PGC
01/03/2013 16:46
HALFYR
REL: 1646 HRS Pyne Gould Corporation Limited
HALFYR: PGC: Half Year Results for period ended 31 Dec 2012
Half Year Results from Pyne Gould Corporation Ltd
1 July 2012 to 31 December 2012
Pyne Gould Corporation ("PGC") made an unaudited after tax profit of $1.5m
for the half year to 31 December 2012 compared with a loss of $27.1m for the
same period last year.
PGC expects a full year profit to 30 June 2013 in excess of $10m, as compared
with a loss of $47.7m for the 30 June 2012 year.
Profit and Loss
Consolidated segment income across the Group was $26.1m, which is up 10.1% on
the $23.7m same period last year. Of this, net operating income from
continuing operations was $11.1m, up 24.7% on the $8.9m in the same period
last year. Operating Profit from continuing operations was $3.4m compared
with a loss of $26.7m last year.
Profit from continuing operations was $1.9m compared with a loss of $27.1m.
Perpetual Group was announced as conditionally sold on 3 January 2013. PGC
expects this transaction to be unconditional by the end of Quarter 1, 2013.
It has, therefore, been treated as discontinued operations, consistent with
accounting standards.
Balance Sheet
During the period PGC completed the liquidation of its residual PGW and
Heartland shares and repaid $20m of term bank debt and repaid its working
capital overdraft.
Torchlight Investment Group (TIG) has continued to build its core investment
and asset management business during the period under review
Its largest investment is its cornerstone holding in Torchlight Fund LP 1
(Torchlight Fund). In December 2012, in response to the requirements of
offshore limited partners, PGC, together with its professional advisers
reviewed the domicile of the fund. The outcome was a restructure of the fund
into an Australian Dollar fund with a tax neutral domicile, which is better
suited to the future growth of the fund. The fund is currently raising
further funds to expand in Australia and the UK.
TIG, via sister company Torchlight Securities, owns circa 42 million shares
in EPIC. Torchlight has repeatedly said that it expects EPIC's principal
investment in United Kingdom motorway services area company Moto to prove to
be a valuable long-term real estate investment. Moto remains the number one
motorway services area company in the UK market
TIG holds assets inherited from the old bad book of Marac. TIG collects and
reinvests these via Torchlight Fund LP 2. Torchlight LP 2 focuses on real
estate and financial services has exited its initial exposure to litigation
funding. The financial services investment is Australian investment research
and management firm van Eyk - which is expected to be sold as part of the
exit of Perpetual this quarter.
Property Assets Limited has $9.6m left at book value to realize. Real Estate
Credit Limited (RECL) has a security pool of assets sufficient to fund the
maximum residual claim cap of $28m under the management agreement with MARAC.
RECL has immaterial net impact on PGC.
Perpetual Group
PGC is in the final stages of its exit from Perpetual Group. We will update
the market once complete.
George Kerr
Managing Director
For more information, please contact:
David Lewis 021 976 119
End CA:00233679 For:PGC Type:HALFYR Time:2013-03-01 16:46:29
