Somme Hi,Keybridge management over the past 3 years have been...

Somme Hi,

Keybridge management over the past 3 years have been savage in their impairment writedowns on assets.
Something I totally endorse and wish other companies were as vigilant.
This leaves positive opportunities on the upside with assets considered worthless on the balance sheet ( e.g. Shipping)at current market conditions.
As things improve in the US we will see some revalueing to the upside just like we have seen in the RFC asset.
We are also cashflow positive and I believe this will continue to improve as the debt burden lightens.
This company has been very well managed believe me and they have met every milestone for shareholders that they set themselves.
NB doesn't tie up all his funds for 2-3 years with an expectation of a compound 25% return.

He knows and so do I.


FROM THE 2012 FULL YEAR RESULTS.

While the PE investment did not pay any cash distributions to Keybridge during 2012, it has in the
past, and due to a progressively improving outlook for the US economy, the underlying investee
entities in which the fund has invested, are all showing signs of material improvement. It is due to
this improving position and the valuation of the underlying investee companies that Keybridge has
written up its carrying value on this investment from USD7.2 million to USD12 million. This write
up, derived by recognising income accrual on this investment, is more than adequately supported
by the independent valuation of the underlying investee entities, which is further supported by the
fact that post balance date, as advised to the market on 3 August 2012, Keybridge has received a
tax paid cash distribution of USD6.0 million from the Fund. This distribution in pre tax terms
returned in full the Company’s original capital investment in this Fund.