ABN 57 073 990 735
CONTENTS
Results for announcement to the market
Media Release
Appendix 4D Accounts
Independent Auditors' Review Report
This half-year report is presented under listing rule 4.2A and should be read in conjunction with the Company's 2015 Annual Report.
RESULTS FOR ANNOUNCEMENT TO THE MARKETThe reporting period is the half-year ended 31 December 2015 with the previous corresponding period being the half-year ended 31 December 2014. The results have been reviewed by the Company's auditors.
Results for announcement to the market
Profit for the half-year was $5.1 million, up 79.9% from $2.8 million the previous corresponding period. This was primarily due to the increased use of the trading and options written portfolios, which together recorded gains before tax of $3.2 million ($41,000 in the previous corresponding period).
Revenue from investments was $3.64 million, up 1.1% from $3.60 million in the previous corresponding period. This excludes capital gains on investments.
Net tangible asset backing per share before any provision for tax on unrealised gains at 31 December 2015 was 93 cents per share, up from 87 cents at the end of the previous corresponding period.
A final dividend of 4 cents per share (fully franked) in respect of the financial year ended 30 June 2015 was paid on 25 August 2015.
In line with the Company's practice, no interim dividend has been declared in respect of the half-year ended 31 December 2015.
The Company has initiated a share purchase plan which is due to close on 25 February 2016. Shares will be issued at 2.5% discount to the volume weighted average price of AMH shares traded on the ASX and Chi-X automated trading systems in the 5 days up to and including the planned closing date.
RESULT SUMMARY TO 31 DECEMBER 2015
AMCIL's investment style seeks to have a focused portfolio where large, mid and small companies can have an equally important impact on portfolio returns.
Six month portfolio return was 7.4%, including franking it was 9.5%.
One year portfolio return was 12.2%, including franking it was 14.3% (this is 10.1% greater than the S&P/ASX 200 benchmark with franking).
Half Year Profit increased 79.9% to $5.1 million
Announcement of a Share Purchase Plan
Portfolio
The Company's recent portfolio returns have benefited from repositioning some exposure towards mid and smaller companies. In this context, the best performing stocks over the half year were in companies such as Treasury Wine Estates, iProperty Group, Tassal Group, Citadel Group, AMA Group and Japara Healthcare. Of the larger companies in the portfolio CSL and Brambles also delivered strong returns to the portfolio.
A number of new companies were added through the six month period. These included Mainfreight, OzForex Group (prior to the current takeover offer), Wellcom Group, Woodside Petroleum, Vocus Communications, Ardent Leisure, Seek and Paragon Care. The purchase of Woodside Petroleum was as a result of the rebalancing of exposure to the energy sector with the complete sale of the holding in Santos and a reduced exposure to Oil Search. The other major increase was adding to the existing holding in Healthscope, given the ongoing attractiveness of the healthcare sector as a long term investment proposition.
As a way of financing the repositioning of the portfolio in the half year there was a lessening in exposure to the banking sector, including a reduction in Westpac and Commonwealth Bank positions. Other sales included large cap holdings AMP and Computershare, as well as Brickworks, Asciano (partial sale in response to the takeover offer) and Vicinity Centres. Energy Developments was also taken over by DUET Group through the period.
Profit and Dividend
Profit for the half year was $5.1 million, up 79.9% from $2.8 million in the previous corresponding period. The increase was due to the improved contribution from the Trading Portfolio, in particular the holding in Netcomm Wireless which increased substantially in value over the period.
In line with previous years the Board has not declared an interim dividend.
Outlook
We expect markets to remain volatile in light of uncertainty about growth prospects in China, higher interest rates in the US and from a domestic perspective an economy looking for renewed growth.
The Company is close to fully invested and Directors believe the recent fall in the market has driven valuations back toward more attractive buying levels.
Share Purchase Plan
In a portfolio that has an investment approach that can scan for the best opportunities in the market, irrespective of company size, it is important to have the flexibility to take advantage of market conditions and other opportunities such as IPO's.
Against this background, the Company has initiated a share purchase plan which is expected to raise between $7 million to $10 million. It is due to close on 25 February 2016.
Please direct any enquiries to:
Ross Barker Geoff Driver
Managing Director General Manager
(03) 9225 2101 (03) 9225 2102
19 January 2016
Acquisitions (above $2.0 million)* | Cost |
$'000 | |
Mainfreight | 4,859 |
OzForex Group | 3,267 |
Healthscope | 3,150 |
Wellcom Group | 3,008 |
Woodside Petroleum | 2,927 |
Vocus Communications | 2,685 |
Ardent Leisure Group | 2,333 |
Seek | 2,030 |
Paragon Care | 2,000 |
* all are new holdings other than Healthscope | |
Disposals (above $2.0 million) | Proceeds |
$'000 | |
Westpac Banking Corporation | 4,832 |
Brickworks# | 4,017 |
Santos# | 3,833 |
Energy Developments# (takeover by DUET Group) | 3,200 |
Asciano | 2,770 |
Oil Search | 2,703 |
Computershare# | 2,631 |
AMP | 2,630 |
Commonwealth Bank | 2,510 |
Vicinity Centres# | 2,223 |
# complete disposal from the portfolio |
Includes investments held in both the Investment and Trading Portfolios
Valued at closing prices at 31 December 2015
Total Value $ '000 | % of Portfolio | ||
1 | * Commonwealth Bank of Australia | 12,623 | 5.5% |
2 | Brambles | 10,213 | 4.5% |
3 | * Oil Search | 9,927 | 4.3% |
4 | CSL | 8,635 | 3.8% |
5 | * Telstra Corporation | 7,555 | 3.3% |
6 | Qube Holdings | 7,200 | 3.2% |
7 | * Incitec Pivot | 6,812 | 3.0% |
8 | QBE Insurance Group | 6,799 | 3.0% |
9 | TPG Telecom | 6,478 | 2.8% |
10 | * National Australia Bank | 6,437 | 2.8% |
11 | Treasury Wine Estates | 6,309 | 2.8% |
12 | Lifestyle Communities | 6,275 | 2.7% |
13 | Transurban Group | 5,759 | 2.5% |
14 | * BHP Billiton | 5,338 | 2.3% |
15 | Mainfreight | 5,183 | 2.3% |
16 | Japara Healthcare | 5,148 | 2.3% |
17 | The Citadel Group | 5,082 | 2.2% |
18 | James Hardie Industries | 4,892 | 2.1% |
19 | CSG | 4,500 | 2.0% |
20 | ResMed | 4,464 | 2.0% |
135,628 | |||
As % of Total Portfolio (excludes Cash) | 59.4% |
* Indicates that options were outstanding against part of the holding
PERFORMANCE MEASURES AT 31 DECEMBER 2015 | 6 MONTH | 1 YEAR | 5 YEARS %PA | 10 YEARS %PA |
PORTFOLIO RETURN | 7.4% | 12.2% | 9.4% | 10.6% |
S&P/ASX 200 ACCUMULATION INDEX | -0.5% | 2.6% | 7.0% | 5.6% |
PORTFOLIO GROSS RETURN INCLUDING DIVIDENDS REINVESTED* | 9.5% | 14.3% | 11.9% | 12.9% |
S&P/ASX 200 ACCUMULATION INDEX* | 0.3% | 4.2% | 8.6% | 7.2% |
Note: Portfolio performance is measured by the change in net asset backing plus reinvested dividends and adjusting for the additional cash received from the exercise of options since recapitalisation of the Company. AMCIL's portfolio return is calculated after management fees, income tax and capital gains tax on realised sales of investments. It should also be noted that Index returns for the market do not include the impact of management expenses or tax.
*Incorporates the benefit of franking credits for those who can fully utilise them.
7
ABN 57 073 990 735
AMCIL Limited ("AMH")
ABN 57 073 990 735
AMCIL is a Listed Investment Company. It is an investor in equities and similar securities on the stock market primarily in Australia.
Directors: Bruce Teele, Chairman
Ross Barker, Managing Director Peter Barnett
Roger Brown Rupert Myer AO
Richard (Bob) Santamaria
Company Secretaries: SimonPordage
Andrew Porter
Auditor: PricewaterhouseCoopers, Chartered Accountants
Country of
incorporation: Australia
Registered office: Level 21
101 Collins Street
Melbourne, Victoria 3000
Contact Details: Mail Address: Telephone: Facsimile: Email:
Internet address:
Level 21, 101 Collins St., Melbourne, Victoria 3000
(03) 9650 9911
(03) 9650 9100
invest@amcil.com.au www.amcil.com.au
For enquiries regarding net asset backing (as advised each month to the Australian Securities Exchange):
Telephone: 1800 780 784 (toll free)
Share Registrar: Computershare Investor Services Pty Limited
Mail Address:
AMH Shareholder enquiry line:
Facsimile: Internet:
GPO Box 2975, Melbourne, Victoria 3001
Yarra Falls, 452 Johnston Street, Abbotsford, Victoria 3067
1300 653 916
+613 9415 4224 (from overseas)
(03) 9473 2500
www.investorcentre.com/contact
For all enquiries relating to shareholdings, dividends and related matters, please contact the share registrar as above.
Securities Exchange
Code: AMH Ordinary shares
This report in relation to the half-year to 31 December 2015 is presented by the Directors of AMCIL Limited ('the Company') in accordance with a resolution of Directors.
Directors
The following persons were directors of the Company during the half-year and up to the date of this report:
B.B. Teele (appointed December 2003)
R.E. Barker (appointed May 1996)
P.C. Barnett (appointed August 1996)
Brown (appointed February 2014)
Myer AO (appointed January 2000)
R.B. Santamaria (appointed August 1996)
Company operations and results Overview
AMCIL is a Listed Investment Company which invests primarily in securities listed on the Australian Securities Exchange.
Performance Indicators and Outcomes
Profit for the half-year, which was $5.1 million, was up 79.9% from the previous corresponding period. This was primarily due to the increased use of the trading and options written portfolios, which together recorded gains before tax of $3.2 million ($41,000 in the previous corresponding period).
The net profit for the six months was equivalent to 2.08 cents per share (2014 : 1.21 cents per share).
Dividends and distributions from investments amounted to $3.6 million for the half-year, of which
$2.5 million was from fully franked dividends.
The portfolio return for the six months to December 2015 delivered a return of 7.4% compared to the broader S&P/ASX200 return of -0.5%. AMCIL's portfolio return is after costs and tax paid (including tax on realised capital gains which can be returned to shareholders via franking credits).
As with previous years, the Board has decided not to declare an interim dividend.
Auditors' independence declaration
A copy of the auditors' independence declaration as required under section 307C of the
Corporations Act 2001 is set out on page 12.
The Company is of the kind referred to in Class Order 98/100 issued by the Australian Securities and Investments Commission, relating to the 'rounding off' of amounts in the directors' report and financial report. Unless specifically stated otherwise, amounts in the directors' report and financial
report have been rounded off to the nearest thousand dollars in accordance with that Class Order.
This report is made in accordance with a resolution of the directors.
R.H. Myer AO Director Melbourne
19 January 2016
Auditor's Independence Declaration
As lead auditor for the review of AMCIL Limited for the half-year ended 31December 2015, I declare that to the best of my knowledge and belief, there have been:
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
no contraventions of any applicable code of professional conduct in relation to the review.
Charles Christie Partner
PricewaterhouseCoopers
Melbourne
19 January 2016
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Amcil Limited issued this content on 31 December 2015 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 January 2016 13:31:36 UTC
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