Have been looking at some oversold financials recently and have settled on KBC and bought today as the co. is trading on a large discount to its book value of $1.55 per share-shares currently 92c
Keybridge Capital Limited (KBC) announced an 80% increase in net profit after tax on the previous half year to $7.16 million for the six months ended 31 December 2007. The company confirmed its full year NPAT guidance of at least $20 million, in line with previous estimates.
The financial services company said it expects to report NPAT for the full 2008 financial year of at least $20 million, equating to earnings per share of just over 11c. This forecast is unchanged from previous guidance.
Keybridge advised that as at 31 December 2007 it had total investments of $375 million, up 42% from the level at 30 June 2007.
Managing director Mark Phillips said returns from current investments were at or above expectation and the outlook remained sound.
“Underlying supply and demand conditions in the various asset classes continue to support the company’s investment returns,” Mr Phillips said.
Mr Phillips said the growth in investments had been spread principally across three of its core asset classes of property, infrastructure and aviation, with an average return on investments of 17% per annum.
“In addition, profit shares on our investments, as well as a lower tax rate on some income, partly offset the final provisions on our securitisation investments,” he said.
“Looking forward, we can now focus on the robust underlying profitability of the business.”
Keybridge Capital advised that its investment portfolio was well diversified by asset class, counterparty, location and maturity with an average investment size of $13 million.
The company noted that it manages all its investments actively with only one investment at present that required closer than normal attention.
This investment is a $15 million first ranking secured loan with a low loan to value ratio of less than 50%.
The firm advised that it currently has $474 million of available capital, comprising equity of $264 million and committed debt facilities of $210 million maturing in December 2009.
At 31 December 2007, the company had cash and undrawn debt of $92 million, and it noted that it had a capacity to raise additional equity and debt.
The company proposed an interim dividend of 4c per share fully franked, to be paid on 19 March 2008
Interested to hear others thoughts on this co.