Charter Pacific’s solid profit continues strong returns on shareholder funds
Listed Investment Company Charter Pacific Corporation (ASX:CHF) today posted a gross profit of $15.1 million for the 2004/05 financial year, maintaining the company’s double digit annual return on shareholder funds over the past five years.
The financial year results showed that Charter Pacific:
- made a net profit after tax, equity accounting of its associates and other expenses of $5.2 million;
- continued to deliver solid revenues of $30.6 million;
- held a strong cash position, with cash assets at $27 million (39 cents per share); and,
- had a Net Tangible Asset as at 30 June 2005 of 54 cents per share, an increase on the 52 cents per share in the previous year.
Managing Director of Charter Pacific Kevin Dart said the company had been vigorously seeking new investments, particularly in the financial services sector and continued to do so.
“The results that Charter Pacific has delivered reflects the implementation of our investment strategy over the past five years of actively enhancing investments and capitalising them at the optimum time,” Mr Dart said.
“Over the past year we have continued to actively manage and assist our investments to achieve key milestones and expand and advance their businesses.
“For example, we worked closely with our bio-pharmaceutical investment, ChemGenex Pharmaceuticals, to list on the NASDAQ thereby increasing its exposure to the US capital markets and US institutional investors.
“We have also assisted OEM NuTech, an advanced powder coating solutions company, to successfully progress a number of significant partnering opportunities.
“This strategy has enabled the company to achieve an average return on shareholder funds of almost 20 per cent during the past 5 years.
“We believe Charter Pacific is well positioned to continue to generate positive returns, given our significant investments in a number of highly regarded private and publicly-listed companies.; Our strong cash position enables us to carefully select the best investment opportunities.
Mr Dart said highlights of the year included:
- a $A1 million dividend to the company from its investment in New York investment bank, Global Markets Capital Group – representing a 50 per cent return on the investment;
- the further strategic major sell-down of its interest in Metal Storm -a company which Charter Pacific helped take from a concept to one that was ASX and NASDAQ listed – which has to date returned more than $60.5 million on a $2.5 million investment;
- OEM NuTech’s winning of another major powder coating client, a leading car component manufacturer;
- ChemGenex Pharmaceuticals advancing into the important Phase 2 clinical trials for its two anti-cancer compounds, Ceflatonin and Quinamed.; The global anti-cancer market is US$6 billion;
- ChemGenex Pharmaceuticals entered into an alliance with Geneva based, Stragen Pharma SA to accelerate clinical development and commercialisation of Ceflatonin.
About Charter Pacific Corporation
Charter Pacific Corporation is a diversified investment company that listed on the Australian Stock Exchange in 1988. Today the company invests in a diverse range of listed and unlisted entities across a broad range of industries.; Its current investments include: ChemGenex Pharmaceuticals (ASX: CXS), Global Markets Capital Group (unlisted), OEM NuTech (unlisted), and Monteray Group (ASX: MRY).