360 Capital has delivered a solid result for 1H16, highlighted by strong growth in its funds management and co-investment revenues, as well as the full repayment of bank debt during the period
A link to the company’s announcement is available here. Key points from the 1H16 result:
- Total revenue is up 18.7% to $14.6m. Total co-investment revenue up 48.3% to $8.6m and funds management revenue is up 60% to $4.8m
- Operating EBIT is up 28.3% to $10.9m, operating profit after tax up 9.1% to $7.6m
- Debt / Total assets slightly increased from 30.5% to 32.4%, with the $75m bond now being the only debt facility outstanding with the issuer after fully repaid its outstanding bank debt
- Overall funds under management is up 19% in the last 6 months to $1.4bn
- The company is continuing to buy back its equity which is not positive to bondholders because it reduces equity capital in the business. Having said this, the company has stated it can buy back up to a further 21.2m shares or roughly $20m which we don’t believe as a total figure is material enough to warrant a credit concern
The 360 Capital bond maturing in September 2019 is currently offered at an indicative yield to maturity of 6.07% and offers a high running yield of 6.73%.
A link to the full research report is available here.
Please contact your FIIG representative for further information and current pricing levels on the 360 Capital bond. Available to retail and wholesale investors..
Director – Infrastructure and Fixed Income Research.
Alen joined FIIG Securities in May 2014 and is responsible for covering the infrastructure/PPP, resources, airlines and property sectors.