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.
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.
PGC is in the final stages of its exit from Perpetual Group. We will update the market once complete.
For more information, please contact:
David Lewis 021 976 119