KBC - Keybridge Capital

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.
Advertisement
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.

cheers ormond

ormond said:

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.
Advertisement
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.

cheers ormond

Click to expand...

Not too bad this one

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 5.3 12.1 17.8 19.4
DPS 2.3 12.0 17.8 19.4

Business Description
Mariner Bridge is an investor in structured finance transactions in the core asset classes of property, fixed income, leasing and infrastructure. Its objective is to build a diversified portfolio of investments that delivers high returns to shareholders.

Company Strategy
Mariner Bridge Investments strategy is to invest in structured finance transactions, that backed by real assets, financial assets or cashflow, in the target assets classes of property, infrastructure, fixed income and leasing. The company develops strategic relationships with a number of specialist partners who can source transactions across the target asset classes. Its current investment portfolio, which comprises a mix of debt and equity investment, is diversifies across target asset classes, geographies and external asset origination partners. In addition to these target asset classes, the company may invest opportunistically in other transactions, provided they comply with the criteria set out in the companys risk management framework. Mariner Wealth Management reported Net Loss of $157.431 for the year ended 30 June 2006. Revenues from ordinary activities were $597,101. Diluted EPS was (0.43) cents compared to (0.27) cents last year. The net operating cash outflow was $187,450 compared to an outflow of $150,011 in the pcp. No dividend was declared

Click to expand...

.

I waited till it bottomed out and began surging, came in at 85 cents, so far its up to $1, had a few big days this last week. It hit a bit of resistance at $1 on Friday, with a fair few traders selling at that point, but just as many buying back in at 95 cents.

Here's hoping for a solid bull run, as it seems immensely undervalued now. Any thoughts?

Would have been great to get in lower but I don't really believe in picking bottoms (Unless they're trading at something absurd like 6 PE ratio with low risk)

Keybridge to establish funds management business as profit jumps

7th August 2008, 8:45 WST


Infrastructure and property investor Keybridge Capital is going into funds management and has forecast fiscal 2009 earnings to grow by as much as 32 per cent after it trebled its net profit in 2008.

The Sydney-based firm said the present economic environment would provide it, in due course, with an increased deal flow with attractive returns.

“Given this likelihood, the company has begun developing a funds management platform for its activities,” it said.

“The company has been successful in obtaining a wholesale funds management licence and is progressing discussions with investors to ensure optimal fund design.”

Listed infrastructure funds management models championed by Macquarie Group Ltd and Babcock & Brown Ltd are under pressure from poor market performance. But the popularity of wholesale managed funds, which aren’t listed on the stock exchange, has remained strong.

Keybridge has a $418 million investment portfolio and grew net profit in fiscal 2008 by 407 per cent to $20.757 million.

Second half profit rose sharply after the firm took write-downs on “one set of investments” in the first half.

“Whilst the prevailing market environment remains challenging, the balance of supply and demand in the property, aviation, shipping and infrastructure markets is, in general, sound,” Keybridge said.

“This, together with the risk mitigants that the company has structured into its investments, provides confidence that the investment portfolio can continue to deliver solid earnings.”

The Sydney-based firm forecast 2009 earnings per share to grow to between 15 and 16 cents, up from 12.1 cents last year.

“We are conscious, however, that uncertainty must attach to any current outlook and we remain alert to possible further changes in market conditions,” the company said.

Keybridge said it expected to grow earnings per share over the next two to three years.

In property, the majority of its investments are in mezzanine loans secured by residential and commercial projects.

Mezzanine, or secondary loans, are more expensive because they are riskier than primary loans from a bank.

In aviation, Keybridge said its investments were predominantly mezzanine loans secured against about 60 passenger jet aircraft.

In shipping, mezzanine loans and equity investments were secured by 25 vessels in the bulk cargo sector.

In infrastructure, investments are mostly in solar projects in Spain and a wind project in Germany.

AAP

The market liked this result pushing the stock up 22% today.
Nice to see a good news story among the financials!

Been looking at this stock for a while now.

Where can I find some "quality" research that's up to date and not going to cost me an arm and a leg?

Keybridge Capital

This company got hammered during the GFC and went from $2.70 down to as low as $0.08. Recent days have seen is rise to $0.12 and it would appear someone has taken a major stake in the company. The company claims a book value of around $0.70 for their investments. Anyone have any idea where this may go. I bought in for my daughter at $0.10.

Re: Keybridge Capital

MarkeyMark said:

This company got hammered during the GFC and went from $2.70 down to as low as $0.08. Recent days have seen is rise to $0.12 and it would appear someone has taken a major stake in the company. The company claims a book value of around $0.70 for their investments. Anyone have any idea where this may go. I bought in for my daughter at $0.10.

Click to expand...

Mark thanks for pointing out this stock.

Read the earlier posts and read some of the company's announcements and you will soon paint a picture of what was going on.

Back in the boom days, they borrowed from the bank at low rate to finance high risk investments - these investments are nothing more than sub-ordinate and mezz loans in property development, aircraft leases etc. How else can you get 17% return on the investment?

When the good times rolled things looked good. Then GFC came and they were screwed. Many investments defaulted, development stopped, many gone into administration... so bad that they now only earn average of 9% on their investment.

The banks have been quite good to them, giving them extension and what of to liquidate their investments. The NTA per share of 70c is about right on book value, too bad they can't actually realise that value in a hurry.

From a trading perspective, however, there may be an opportunity. You have to ask how much can they get back eventually. The market currently thinks it's less than 20% of the already written down values. Is that fair or is that too low? It's not an absolute game, but a probability game...

Re: Keybridge Capital

skc said:

The banks have been quite good to them, giving them extension and what of to liquidate their investments. The NTA per share of 70c is about right on book value, too bad they can't actually realise that value in a hurry.

From a trading perspective, however, there may be an opportunity. You have to ask how much can they get back eventually. The market currently thinks it's less than 20% of the already written down values. Is that fair or is that too low? It's not an absolute game, but a probability game...

Click to expand...

Sorry made an error here...

The market actually thinks the investments are worth ~75% of the written down values, not 20%.

Market cap ~172m x 12c = $20.5m
Cash ~$13m
Borrowing ~$215m

Total EV = $248.5m

Book value of investment = $324m

Implied valuation discount = ~77%.

All figures based on Jun 09 report.

Hi All,

Anyone hold any of these?

The other half bought some of these before I met her on the reccomendation of an uncle, needless to say her investment is down about 95%, it wasn't huge and she's essentially forgotten about it now.

Given the small sum of money involved I've just left the money in them and have no intention of selling them.

For those holding them are you finding the tit for tat letters between Keybridge and Oceanic Capital quite funny at the moment. To be honest it seems a little unproffesional but I've never owned shares in a company being targetted like this.

Nice waste of paper on both parties, people may sell just to stop recieving the crap they're sending out.

Other announcements have been made since the last post by craggles123. The last one was yesterday...

TAKE NO ACTION IN RELATION TO OCEANIA CAPITAL’S INCREASED OFFER

We note the announcement from Oceania Capital Partners Limited (“Oceania Capital”) to acquire shares in Keybridge Capital Limited (“Keybridge”) on-market at up to 19 cents per share. The effect of any such purchases will be to increase the consideration offered by Oceania Capital under its off-market bid.

We advise that Keybridge shareholders TAKE NO ACTION in relation to the Oceania Capital announcement until the Non-Associated Directors are able to provide further advice to shareholders.

Keybridge shareholders should.....

If you wish to read the complete document you can do so by clicking on this link:- http://stocknessmonster.com/news-item?S=KBC&E=ASX&N=781304

Trade Realisation – RNC Loan Repayment

Magellan Global Options Trade:

Keybridge Capital Limited (Keybridge) advises that it has sold its position in the Magellan Global Fund Options (ASX:MGFO) for $17.8 million. To facilitate the trade, Keybridge and its Managing Director Nicholas Bolton agreed to enter a standstill agreement with Magellan Financial Group Limited (MFG), limiting future dealings in MFG and its related entities for a period of 2 years.

On an after tax, costs and provisions basis, Keybridge expects its after tax NTA to improve by approximately 4c per share relative to its reported 31 October 2023 NTA as a result of the realisation (noting that part of the trade profits had already been booked at this time).

RNC Loan: With proceeds received from the trade Magellan Global Fund Options realisation, Keybridge has repaid $5,314,770.53 against its RNC Loan facility, repaying the loan plus accrued interest in full.

This announcement was approved for release by the Keybridge Board

i do not hold this share

but now this active investor has had a nice win .. maybe there will be interest in it

KEYBRIDGE CAPITAL LIMITED ANNOUNCES ALL CASH TAKEOVER OFFER FOR YOWIE GROUP LTD

LODGEMENT OF BIDDER’S STATEMENT FOR YOWIE GROUP LTD AND NOTICE OF REGISTER DATE

Keybridge Capital Limited (ASX:KBC) (Keybridge) today announced an off-market takeover offer for all of the ordinary shares in Yowie Group Limited (ASX:YOW) (Yowie), for a cash consideration of 3.4 cents per Yowie Share (the Offer).

Keybridge is making the Offer in order to increase its ownership level in Yowie and thereby achieve greater influence over Yowie’s future strategy and direction.

As a result of the Offer, Yowie Shareholders now have a choice between:

• Certain cash value for their Yowie Shares; or
• The uncertainty associated with a continued holding of Yowie Shares.

Offer highlights Yowie Shareholders can accept the Offer in respect of all or some of their Yowie Shares.

The Offer Price of 3.4 cents per Yowie Share represents:
• a 9.68% premium to the one month volume weighted average price (VWAP) of Yowie Shares up to 28 December 2023.
• a 17.24% premium to the price of Yowie Shares at close the day prior to this Offer.

Keybridge is offering 100% cash for Yowie Shares enabling Yowie Shareholders to realise a certain cash value for their Yowie Shares in the event the Offer becomes or is declared unconditional.

The Offer is unconditional subject only to the following:

(a) A condition that relates to the occurrences or non-occurrences of an event referred to in subsection 652C(1) or 652C(2) of the Corporations Act 2001 (Cth) (Corporations Act);
There is no minimum acceptance condition or any other condition.

As a consequence, Keybridge is now entitled under the Corporations Act to purchase Yowie Shares on-market during the bid period. Keybridge has instructed its broker, Ord Minnett, to immediately commence purchasing Yowie Shares on-market at or below the Offer Price (but reserves the right to withdraw those instructions at its discretion).

There are no other conditions on any purchase by Ord Minnett of Yowie Shares on-market.

This provides Yowie Shareholders with the alternative of selling their Yowie Shares on-market and receiving cash payment on a T+2 basis.
Bidder’s Statement Keybridge has today lodged its Bidder’s Statement with the Australian Securities & Investments Commission and Yowie. In accordance with item 5 of section 633(1) of the Corporations Act, a copy of the Bidder’s Statement accompanies this announcement. Yowie Shareholders should review the Bidder’s Statement carefully before making any decision about what action they should take.

Keybridge will dispatch the Bidder’s Statement and personalised acceptance forms to Yowie Shareholders in accordance with the prescribed timetable under the Corporations Act.

Yowie Shareholders should consult their financial or other professional adviser if they are unsure as to what action they should take. Register date In accordance with section 633(4) of the Corporations Act, Keybridge gives notice that it has set 28 December 2023 as the date for determining the persons to whom the Bidder’s Statement and offers will be sent.

END

i do not hold either share

an on-market/off-market play for control ( not necessarily a 100% acquisition )

interesting

oops

illustrious company

oops.

assets frozen .. Bolton's