Slide 1: Welcome
Welcome. My name is Nicholas Bolton, Keybridge’s Managing Director, and I am pleased to present to you the Company’s financial results for the financial year ended 30 June 2014. This presentation addresses the present status of the Company’s financial position, its portfolio of assets, and the outlo
Slide 2: Full year highlights to 30 June 2014
For the year to 30 June 2014, Keybridge net loss after tax attributable to ordinary shareholders was $2.9 million, compared with a loss of $3.8 million in the prior year. This represents a basic and diluted loss of 1.74 cents per share (2.21 cents per share loss in 2013). The realisation of $14.9 mi
Slide 3: Income, expenses and impairments
The majority of income is being recognised on two assets, one of which is paying quarterly disbursements with the most recent payment received in August 2014. The balance of income is interest earned at an average rate of 3.62% per annum on average cash on deposit of $17.4 million for the 12 months
Slide 4: Profitability trend through the year
Looking at the trend of profitability through the year, we can see that there was a smaller net operating loss in the second half. This was delivered through managing regular operating costs, improved income across the portfolio. The major negative contribution in the second half was the increase of
Slide 5: Cash income and new investments
Generating cash income continues to be a key focus. Interest income received from cash on deposit was $0.65 million and Totana of $0.32 million. Overall cash increased from June 2013 as a result of the partial repayment from the PRFG loan of $10.5 million, a repayment from P&J of $3.1 million, cash
Slide 6: Shareholders' funds and net tangible assets
Keybridge’s shareholders’ funds were $36.6 million as at 30 June 2014, with net tangible assets (NTA) of 23 cents per share, a reduction of 1 cent per share from 30 June 2013. The loss resulted primarily from $1.4 million in non-recurring takeover and legal costs, and $0.5 million in net asset impai
Slide 7: Total book value of assets by class
At 30 June 2014, the total book value of the Company’s assets was $37.3 million. The largest asset class is cash representing 39% of total assets. Infrastructure - 19%, Listed Equity - 17%, Private Equity - 14%, Property - 6%, and Lending - 5%. I will now go through those relevant investments in det
Slide 8: Infrastructure: Total book value $7.0 million
Infrastructure: Total book value $7.0 million. In March 2008, Keybridge developed a 1.05MW solar photovoltaic electricity facility in southern Spain known as Totana. Although the plant has previously had some production issues that have been or are being rectified under warranty, the plant has been
Slide 9: Listed Equity: Total book value $6.3 million
Listed Equity: Total book value $6.3 million. Keybridge has grown its Listed Equity investments from 7% of the portfolio at June 2013 to 16% at June 2014. The majority of investments have been small stakes in shares in ASX- listed entities, with the two substantial holdings being: • A 19.1% investme
Slide 10: Private Equity: Total book value $5.2 million
Private Equity: Total book value $5.2 million. Keybridge holds a limited recourse loan to RPE1 Investor LLC, a Colorado USA limited liability company, which holds units in a Private Equity Fund. This loan accrues interest at 14.5% per annum and has a maturity date of 31 December 2017. Keybridge’s lo
Slide 11: Property: Total book value $2.5 million
Property: Total book value $2.5 million. P&J Projects: In 2007 and 2008, Keybridge invested $5.95 million in mezzanine loans against a residential and retail property development located in inner Sydney. These loans are currently in default and accumulating interest such that the current face value
Slide 12: Lending: Total book value $1.8 million
Lending: Total book value $1.8 million. Keybridge achieved a significant result this financial year by being repaid $10.5 million of a $11.7 million written value loan to PRFG. This was accomplished by first acquiring the shares in PRFG via a scheme of arrangement in August 2013 and then selling its
Slide 13: Shipping: Total book value $nil
Shipping: Total book value $nil. As at 30 June 2013, Keybridge held an effective 48.5% investment in Oceanic Shipping Company 8 Limited (Oceanic Shipping). Oceanic Shipping owned three shipping vessels which were previously chartered to Honglam. On termination of the Honglam charter, Oceanic Shippin
Slide 14: Staff and Board
Keybridge’s parent company now only has a full time staff of four (including the Managing Director), and a Board of four directors (MD, ED and three non-executive directors). Transaction management is handled by the Managing and Executive Directors, with the other two staff assisting in day-to-day f
Slide 15: Outlook for Keybridge
Now turning to the outlook for Keybridge. Having largely completed the difficult program of complex asset realisations and workouts over the last few years, Keybridge is currently reviewing a number of investment opportunities and will keep the market informed as they progress. 15
Slide 16: Thank you
Thank you for your time today. If you have any follow-up questions, please contact me directly. 16