This article is from the Australian Property Journal archive
CVC Limited has cut profit after tax forecasts for the financial year 2008 – expected to be $7 million compared to $30.8 million in FY2007.
CVC’s director Alexander Beard said the last six months has seen a further deterioration in equity capital markets and the company has determined that it has not been appropriate to exit any key investments.
Additionally, CVC has significant shareholdings in a number of listed investments which are required to be equity accounted, including CVC Trinity Property Fund.
As a result, it is now expected that after providing for the impact of impairment charges and write-downs of approximately $8 million, the full year net operating profit after tax will be approximately $7 million.
Meanwhile the final dividend guidance of 3 cents fully-franked final dividend payable in October 2008 does not change.
Beard said notwithstanding the current impact on operating profit, the volatility in capital markets has presented CVC with a significantly improved flow of investment opportunities and with cash holdings in excess of $50 million is well placed to capitalise on these opportunities.
CVC’s share price closed 1 cent higher at $1.00.
Australian Property Journal
