- Investment and venture firm CVC (CVC) has provided a market update regarding the impacts of COVID-19 on the company
- The company is expecting a net loss after tax of approximately $3 million to $4 million for the financial year
- CVC has also downsized its investment portfolio to concentrate on its property assets and loan exposures
- In light of current uncertainty, the company does not plan to pay a dividend for the 2020 financial year
- CVC shares are steady today, trading for $1.35 per share
Investment and venture firm CVC (CVC) has provided a market update regarding the impacts of COVID-19 on the company.
In early April, the company announced that it would be difficult to deliver a forecast for operating results of the year ending June 30, 2020. This was a result of the immense market volatility and uncertainty which resulted from the COVID-19 pandemic.
Since then, CVC has undertaken a preliminary review of its financial results for the financial year. The company expects to record a net loss after tax of approximately $3 million to $4 million for the financial year.
This is something of an improvement, when compared to the forecast provided in April 2020, which predicted a loss of $9 million to $11 million. However, this more recent estimate is still subject to audit and potential further adjustments.
CVC has downsized its investment portfolio, in order to concentrate on its property assets and loan exposures. These investments, plus cash balances, make up approximately 64 per cent of the company’s current investment portfolio.
CVC’s property loan portfolio made significant contributions to the year, to the tune of approximately $10 million.
During its review of its investment, the company has found that the property portfolio has largely been unaffected, in terms of impairment. However, the carrying value of some non-property investments has decreased.
In light of current circumstances, CBC does not plan to pay a dividend for the 2020 financial year. However, the company does intend to continue balancing capital return to shareholders against the maintenance of appropriate balance sheet strength.
CVC shares are steady today, trading for $1.35 per share at 10:46 am AEST.