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CVC LIMITED Interim / Quarterly Report 2014
64728_rns_2014-02-27_dc31e2ae-5c70-49ca-b4dc-363271ec33ca.pdf
Interim / Quarterly Report
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RESULTS ANNOUNCEMENT FOR THE 6 MONTHS ENDED 31 DECEMBER 2013
INTRODUCTION
CVC Limited (ASX:CVC) [the Company] today reported a statutory net profit after tax attributable to shareholders of \$11.3 million (2012: profit of \$9.3 million) for the six months ended 31 December 2013, an improvement of 21.3% over the previous corresponding period. Total comprehensive income for the six month period was \$31.9 million an improvement of \$20.4 million (179.0%) over the previous corresponding period. Reflective of the significant improvement in comprehensive income, total shareholder returns for the period, as measured by Net Tangible Assets per share (NTA), increased by 23 cents per share in the six month period (2012: 6 cents) after providing for the payment of a dividend of 3 cents per share in September 2013. This represented a return on NTA of 18% (2012: 7%) for the six month period.
COMMENTARY
Highlights during the half year were:
Balance Sheet Strength
Shareholders' equity increased by \$27.3 million to \$199.3 million over the six month period, after dividend payments during the period of \$3.6 million. Closing cash balances grew by \$11.9 million to \$39.5 million as at 31 December 2013.
Listed Investments
The contribution from listed investments to comprehensive income for the six month period was \$27.4 million (2012: \$2.1 million). This contribution comprised \$6.6 million from realised profits and ASX listed investment revaluations of \$20.8 million.
The current period was significantly influenced by a partial realisation of CVC's shareholding in Villa World Limited (ASX:VLW) and Vita Life Sciences Limited (ASX:VSC). These two companies contributed \$5.3 million to comprehensive income during the six month period.
The market value of listed investments increased by \$20.8 million (2012: \$2.0 million), with significant contributions from holdings in Bionomics Limited (ASX:BNO), Villa World Limited, Buru Energy Limited (ASX:BRU) and Vita Life Sciences Limited amounting to \$19.1 million.
Property
Property investments contributed \$2.6 million (2012: \$3.1 million) to comprehensive income. This included interest related income generated from the provision of mezzanine finance facilities of \$2.8 million and net rental income, after interest related expenses, of \$1.0 million. In addition, impairments in relation to directly held properties totalled \$1.0 million.
During the period under review the residential joint venture project at Rockhampton, QLD, comprising 171 lots, commenced settlement of Stages 1 and 2. Development of Stage 3 commenced prior to the end of the period. Further, the property located at Richards Road, Riverstone, NSW, with a total land area of approximately 153 hectares, made significant progress towards being released for residential development.
Private Equity
The contribution to comprehensive income for the period was \$2.2 million (2012: \$6.3 million). Both Greens Foods Holdings Pty Limited and Ron Finemore Transport Pty Limited continued to deliver positive results.
Funds Management
The contribution to comprehensive income of \$1.0 million (2012: \$1.1 million) was consistent with the prior period.
Consolidated Trading Operations
Cellnet Group Limited (ASX:CLT) and Battery Energy Power Solutions Ptv Limited provided a combined contribution to comprehensive income of \$2.2 million (2012: \$2.4 million) for the six month period. Both companies continued to focus on operational improvements and working capital management.
2014 OUTLOOK
The growth in Net Tangible Assets during the period was underpinned in large part from increases in the value of key listed investments, including share price appreciation of Bionomics Limited, Villa World Limited, Buru Energy Limited and Vita Life Sciences Limited.
The volatility of listed equity markets and the influence of the consolidated trading results of investee companies makes it difficult for the Company to meaningfully forecast CVC's 2014 full financial year result.
CVC continues to focus on delivering pre-tax investment returns in excess of 15% per annum over the investment cycle.
CAPITAL MANAGEMENT
Since 1 July 2013, CVC has bought back on market 380,877 shares at an average price of \$1.08 per share.
A fully franked dividend of 3 cents per share was paid to shareholders on 17 September 2013 for the year ended 30 June 2013. On 14 February 2014, the Directors resolved to pay an interim dividend of 2 cents per share and, following a review of the capital structure, the Directors resolved to pay a further special dividend of 5 cents per fully paid ordinary share both payable on 5 March 2014.
ADH Beard Director 28 February 2014
Appendix 4D
Half-Yearly Report Results for announcement to the market
| CVC Limited | ||||
|---|---|---|---|---|
| ABN | Half-Year ended ('Reporting Period') |
Previous Half-Year ended ('Corresponding period') |
||
| 34 002 700 361 | 31 December 2013 | 31 December 2012 | ||
| Results | ||||
| Revenue from ordinary activities | up | 25.6% | to | 77,082,944 |
| Profit/(loss) before tax | up | 9.9% | to | 12,430,630 |
| Profit/(loss) after tax attributable to members | up | 21.3% | to | 11,290,436 |
| Net profit/(loss) attributable to members | up | 21.3% | to | 11,290,436 |
The preliminary half-yearly report is based on accounts which have been reviewed.
Dividends (distributions)
| --------------------------------------- | Amount per security | Franked amount per security |
|---|---|---|
| Interim dividend | 2.0 cents | 2.0 cents |
| Special dividend | 5.0 cents | 5.0 cents |
| Prior year interim dividend | 2.0 cents | 2.0 cents |
| Prior year final dividend | 30 cents | 3.0 cents |
Information on dividends:
On 14 February 2014 the directors resolved to pay an interim dividend of 2 cents per share and following a review of the capital structure directors decided to resolve the pay a further special dividend of 5 cents per fully paid ordinary share both payable on 5 March 2014.
As previously advised the Dividend Reinvestment Plan has been suspended until such time as a there is a better correlation between the share price and the underlying net asset value of CVC Limited. As a result, the Dividend Reinvestment Plan will not be in operation.
| Ex-Dividend date for the purpose of receiving the dividend | 19 February 2014 |
|---|---|
| Record date for determining entitlements to the dividend | 25 February 2014 |
| Payment Date | 5 March 2014 |
Commentary
Brief explanation of any of the figures reported above:
Please refer to the attached commentary for a detailed review.
CVC LIMITED AND ITS CONTROLLED ENTITIES
HALF-YEAR FINANCIAL REPORT
For the half-year ended 31 December 2013
ACN 002 700 361
COMPANY PARTICULARS
CVC LIMITED
ACN 002 700 361
DIRECTORS
Vanda R Gould (resigned as Chairman 21 October 2013 and resigned as Director 29 November 2013) John S Leaver (resigned 29 November 2013) John D Read (appointed as Chairman 25 November 2013) Alexander D H Beard Jason Ters (appointed 29 November 2013)
SECRETARIES
Alexander D H Beard John A Hunter
MANAGEMENT TEAM
Mark A N Avery Alexander D H Beard Michael J Bower William J Highland
Joanne Hume John A Hunter Elliott G Kaplan Charles Williams
PRINCIPAL AND REGISTERED OFFICE
Level 42, 259 George Street SYDNEY NSW 2000 AUSTRALIA Telephone: $(02)$ 9087 8000 Facsimile: $(02)$ 9087 8088
SHARE REGISTRY
Gould Ralph Pty Limited Level 42, 259 George Street SYDNEY NSW 2000 AUSTRALIA Telephone: $(02)$ 9032 3000 Facsimile: $(02)$ 9032 3088
AUDITORS
HLB Mann Judd Chartered Accountants Level 19, 207 Kent Street SYDNEY NSW 2000 AUSTRALIA
BANKERS
Westpac Banking Corporation Limited Suncorp-Metway Limited Bank of Western Australia Limited National Australia Bank Limited Deutsche Bank Australia Limited
STOCK EXCHANGE LISTING Australian Securities Exchange Limited
CVC LIMITED & CONTROLLED ENTITIES DIRECTORS' REPORT
The directors present their report together with the consolidated financial report for CVC Limited and its controlled entities ("CVC") for the half-year ended 31 December 2013 and the independent review report thereon.
Directors
The directors of CVC throughout and since the end of the half-year are:
Vanda Russell Gould (resigned as Chairman 21 October 2013 and resigned as Director 29 November 2013) John Scott Leaver (Non Executive Director) (resigned 29 November 2013) John Douglas Read (Chairman and Non Executive Director) (appointed as Chairman 25 November 2013) Alexander Damien Harry Beard (Director and Company Secretary) Jason Ters (Non Executive Director) (appointed 29 November 2013)
There are a number of changes to the membership of Board of Directors. Messer Vanda Gould and John Leaver retired as directors and Mr Jason Ters was appointed as director on 29 November 2013. The information on Mr Ters is as following:
Iason Ters B.Bus (UTS), MAppFin (Macquarie Uni.)
Mr Ters has over 18 years' experience in the finance industry, predominantly in capital markets and investment management. He has held directorships in a number of Australian companies, both public and private.
Most recently, Mr Ters held the role of Investment Manager at Guinness Peat Group (Australia) (GPG). During his 13 years at GPG, Mr Ters was responsible for identifying suitable investments and developing and executing strategies to create or unlock value for investee companies. Mr Ters was also a core member of the management team responsible for implementing GPG's strategic plan to divest its investment portfolio valued at over \$1 billion.
Over the years Mr Ters has served as a director of Farm Pride Foods Limited, CPI Group Limited, Australian Wealth Management Limited (Alternate Director), Gosford Quarry Holdings Pty Limited and Green's General Foods Pty Limited.
Operating Results
The net profit after tax attributable to shareholders for the six months ended 31 December 2013 of CVC amounted to \$11.3 million (2012: profit \$9.3 million).
All segments of CVC continue to positively contribute to operating performance. The significant growth in Net Tangible Assets during the period can be attributed in large part to the share price appreciation of key listed investments, including Bionomics Limited, Villa World Limited, Buru Energy Limited and Vita Life Sciences Limited.
As always the results of CVC are significantly impacted by the timing of major investment realisations. The Board remains cognisant of the need to continue the development and attraction of investees so as to provide regular realisation opportunities. However, in pursuing this strategy the Board remains steadfastly committed to developing longer term value for shareholders rather than on timing realisations for accounting outcomes. During the period CVC has continued to be focused on the development of its core investments, assisting management to restructure and strengthen operations in the face of the current economic climate and to take advantage of opportunities presented to build the companies.
A more detailed review of operations and developments is included in the commentary that accompanies the ASX release of these results.
Dividends
Since the end of the period, the directors have determined to pay an interim dividend in respect of the year ended 30 June 2014 of 2 cents per share, and a special dividend of 5 cents per share, fully franked, payable on 5 March 2014. During the period, directors paid a final fully franked dividend in respect of the year ended 30 June 2013 of 3 cents per share on 17 September 2013.
CVC LIMITED & CONTROLLED ENTITIES DIRECTORS' REPORT
Events subsequent to balance date
Since the end of the period, the directors have determined to pay an interim dividend in respect of the year ended 30 June 2014 of 2 cents per share, and a special dividend of 5 cents per share, fully franked, payable on 5 March 2014.
There are no other matters or circumstances that have arisen since the end of the financial period which significantly affected or may significantly affect the operations of CVC, the results of those operations or the state of affairs of CVC in the financial period subsequent to 31 December 2013.
Auditor's Independence Declaration
A copy of the Independence Declaration given to the directors by the auditor for the review undertaken by HLB Mann Judd Chartered Accountants is included on page 22.
Signed and Dated Sydney this 28th day of February 2014 in accordance with a resolution of directors.
JOHN D Chairmar
ALEXANDER D. H. BEARD Director
CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF-YEAR ENDED 31 DECEMBER 2013
| Notes | |||
|---|---|---|---|
| 31 Dec 2013 | 31 Dec 2012 | ||
| \$ | \$ | ||
| INCOME | |||
| Revenue from services | 991,395 | 1,075,624 | |
| Rental income | 1,634,223 | 1,601,625 | |
| Outgoings recovered | 277,190 | 297,613 | |
| Net gain on sale of equity investments | 2,052,726 | 373,505 | |
| Interest income | 3,522,989 | 4,737,560 | |
| Dividends received | 206,062 | 632,163 | |
| Recovery of investments in associated entities | 1,104,907 | 5,668,685 | |
| Recovery of investments in related entities | 384,838 | 1,755,617 | |
| Recovery of investments in unrelated entities | 5,096,207 | 212,719 | |
| Recovery of loans in associated entities | 947,941 | ||
| Recovery of loans in unrelated entities | 168,302 | ||
| Sale of goods | 59,317,228 | 44,655,743 | |
| Net realised foreign exchange gain | 58,065 | 240,170 | |
| Other income | 190,086 | 259,329 | |
| Total income | 75,004,218 | 62,458,294 | |
| Equity accounted profits | |||
| Share of net profit/(loss) of associates | 7 | 2,078,726 | (1,110,016) |
| EXPENSES | |||
| Net change in fair value of investment properties | 10 | 1,036,596 | 266,748 |
| Cost of goods sold | 12 | 48,584,204 | 34,035,940 |
| Audit fees | 155,253 | 164,420 | |
| Depreciation expense | 274.136 | 242,619 | |
| Directors fees | 321,994 | 370,055 | |
| Employee costs | 5,883,135 | 6,179,293 | |
| Finance costs | 1,516,396 | 1,288,813 | |
| Impairment of listed investments | 1,579,480 | 437,508 | |
| Impairment of investments in associated entities | 779 | 249,254 | |
| Impairment of investments in related entities | 857,530 | ||
| Impairment of loans to associated entities | 548,383 | ||
| Insurance | 201.644 | 196,768 | |
| Legal costs | 45,451 | 74,084 | |
| Management and consultancy fees | 176,463 | 293,970 | |
| Operating lease expense | 817,656 | 683,588 | |
| Travel and accommodation | 199,415 | 119,602 | |
| Other expenses | 3,859,712 | 4,026,564 | |
| Total expenses | 64,652,314 | 50,035,139 | |
| Profit before related income tax expense | 12,430,630 | 11,313,139 | |
| Income tax (benefit)/expense | 2 | (109,300) | 711,311 |
| Net profit for the half-year | 12,539,930 | 10,601,828 | |
| Net profit attributable to: | |||
| Members of the parent entity | 18 | 11,290,436 | 9,310,112 |
| Non-controlling interest | 1,249,494 | 1,291,716 | |
| Net profit for the half-year | 12,539,930 | 10,601,828 | |
| Basic and diluted earnings per share (cents) | 4 | 9.31 | 7.62 |
The above statement of financial performance should be read in conjunction with the accompanying notes to the Half-Year Report.
j $\frac{1}{2}$
CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2013
| Notes | |||
|---|---|---|---|
| 31 Dec 2013 | 31 Dec 2012 \$ |
||
| Profit for the half-year | 12,539,930 | 10,601,828 | |
| Other comprehensive income | |||
| Items that may be reclassified to profit or loss | |||
| - "Available-for-sale" investments: | |||
| - Increase in fair values recognised in other reserves | 24, 104, 729 | 1,884,071 | |
| - Amounts transferred from other reserves to the income | (3,319,815) | 84,686 | |
| statement on sale - Value of associates asset revaluation reserve recognised in other reserves |
(9,301) | ||
| Other comprehensive income for the half-year, net of tax | 20,784,914 | 1,959,456 | |
| Total comprehensive income for the half-year | 33.324,844 | 12,561,284 | |
| Total comprehensive income for the half-year is attributable to: | |||
| Members of the parent entity | 31,869,621 | 11,421,580 | |
| Non-controlling interest | 1,455,223 | 1.139,704 | |
| 33,324,844 | 12,561,284 | ||
$\ddot{\phantom{a}}$
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The above statement of comprehensive income should be read in conjunction with the accompanying notes to the Half-Year Report.
CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013
| Notes | |||
|---|---|---|---|
| 31 Dec 2013 | 30 Jun 2013 | ||
| \$ | \$ | ||
| CURRENT ASSETS | |||
| Cash and cash equivalents | 5 | 39,515,100 | 27,601,321 |
| Loans and other receivables | 6 | 40,697,788 | 44,981,992 |
| Financial assets - "available-for-sale" | 8 | 3,606,974 | |
| Financial assets - "at fair value through profit or loss" | 9 | 1,641,133 | 2,025,775 |
| Inventories | 12 | 29,289,543 | 21,181,608 |
| Current tax assets | 864,508 | 199,944 | |
| Other assets | 967,111 | 903,368 | |
| 116,582,157 | 96,894,008 | ||
| Assets classified as held for sale | 13 | 3,600,000 | |
| Total current assets | 120, 182, 157 | 96,894,008 | |
| NON-CURRENT ASSETS | |||
| Loans and other receivables | 6 | 7,695,660 | 9,421,060 |
| Financial assets - "available-for-sale" | 8 | 79,062,607 | 41,616,876 |
| Investments accounted for using the equity method | 7 | 18,670,953 | 45,893,290 |
| Property, plant and equipment | 11 | 3,516,062 | 3,688,297 |
| Investment properties | 10 | 55,071,189 | 52,588,212 |
| Intangible assets | 150,000 | 150,000 | |
| Deferred tax assets | 33,732 | 33,259 | |
| Total non-current assets | 164,200,203 | 153,390,994 | |
| TOTAL ASSETS | 284.382,360 | 250,285,002 | |
| CURRENT LIABILITIES | |||
| Trade and other payables | 14 | 18,397,166 | 18,300,205 |
| Interest bearing loans and borrowings | 15 | 8,271,991 | 5,042,868 |
| Provisions | 16 | 1.092,711 | 999.542 |
| Current tax liabilities | 17,357 | 17,366 | |
| Total current liabilities | 27,779,225 | 24,359,981 | |
| NON-CURRENT LIABILITIES | |||
| Trade and other payables | 14 | 231,903 | 231,903 |
| Interest bearing loans and borrowings | 15 | 35,039,995 | 34,568,515 |
| Provisions | 16 | 672,844 | 774,004 |
| Deferred tax liabilities | 267,175 | 323,886 | |
| Total non-current liabilities | 36,211,917 | 35,898,308 | |
| TOTAL LIABILITIES | 63,991,142 | 60,258,289 | |
| NET ASSETS | 220,391,218 | 190,026,713 | |
| EQUITY | |||
| Contributed equity | 17 | 105,523,147 | 105,935,045 |
| Retained profits | 18 | 62,517,106 | 54,864,508 |
| Other reserves | 19 | 31,267,081 | 11,164,585 |
| Parent entity interest | 199,307,334 | 171,964,138 | |
| Non-controlling interest | 21,083,884 | 18,062,575 | |
| TOTAL EQUITY | 220,391,218 | 190,026,713 |
$\frac{1}{3}$
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The above statement of financial position should be read in conjunction with the accompanying notes to the Half-Year Report.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2013 CVC LIMITED & CONTROLLED ENTITIES
$\frac{1}{2}$
医三十二十四
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| Contributed ÷ equity |
Retained earnings |
Asset revaluation |
Employee equity benefit |
Foreign exchange translation |
parent Owners of the |
Non-controlling interest |
Total | |
|---|---|---|---|---|---|---|---|---|
| At 1 July 2013 | 105,935,045 | 54,864,508 | 10,698,989 | 198,585 | 267,011 | 171,964,138 | 18,062,575 | 190,026,713 |
| Other comprehensive income Profit for the half-year |
11,290,436 | 20,440,841 | 138,344 | 11,290,436 20,579,185 |
205,729 1,249,494 |
12,539,930 20,784,914 |
||
| Total comprehensive income for the half-year | 11,290,436 | 20,440,841 | 138,344 | 31,869,621 | 1,455,223 | 33,324,844 | ||
| Share of associates equity based remuneration recognised in other reserve Other movements in equity: |
18,542 | 18,542 | 18,542 | |||||
| Acquisition of interest in controlled entities Transactions with shareholders: |
(508,291) | (508,291) | 1,237,533 | 729,242 | ||||
| Employee share options | 13,060 | 13,060 | (6,502) | 6,558 | ||||
| Shares bought back | (412,529) | 631 (412,529) |
(412,529) $\overline{5}$ |
|||||
| Transaction with non-controlling interests Tax Benefit of transaction costs |
631 | 335,055 | 335,055 | |||||
| Dividend paid | (3,637,838) | (3,637,838) | (3,637,838) | |||||
| At 31 December 2013 | 105,523,147 | 62,517,106 | 30,631,539 | 230,187 | 405,355 | 199,307,334 | 21,083,884 | 220,391,218 |
| At 1 July 2012 | 106,813,787 | 51,680,929 | (66, 813) | 320,402 | (239) | 158,748,066 | 14,630,843 | 173,378,909 |
| Other comprehensive income Profit for the half-year |
9.310,112 | 2,146,346 | (34, 878) | 2,111,468 9,310,112 |
1,291,716 (152, 012) |
1,959,456 10,601,828 |
||
| Total comprehensive income for the half-year | 9,310,112 | 2,146,346 | (34, 878) | 11,421,580 | 1,139,704 | 12,561,284 | ||
| Share of associates equity based remuneration recognised in other reserve Other movements in equity: |
(61,626) | (61, 626) | (61, 626) | |||||
| Acquisition of interest in controlled entities Transactions with shareholders: |
285,082 | 285,082 | (191,968) | 93,114 | ||||
| Employee share options | (90,528) | (90,528) | (112, 819) | (203,347) | ||||
| Shares bought back | (422, 982) \$48 |
648 (422, 982) |
\$ (422, 982) |
|||||
| Return of capital to non-controlling interest Tax Benefit of transaction costs |
(673,313) | (673,313) | ||||||
| Dividend paid | (3,669,197) | (3,669,197) | (248,294) | (3,917,491) | ||||
| At 31 December 2012 | 106,391,453 | 57,321,844 | 2,364,615 | 168,248 | (35,117) | 166,211,043 | 14,544,153 | 180,755,196 |
The above statement of changes in equity should be read in conjunction with the accompanying notes to the Half-Year Report.
$\infty$
$\overline{\phantom{a}}$
CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013
| Notes | |||
|---|---|---|---|
| 31 Dec 2013 | 31 Dec 2012 | ||
| \$ | S | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Cash receipts in the course of operations | 68,978,404 | 52,131,880 | |
| Cash payments in the course of operations | (69, 644, 164) | (55, 169, 515) | |
| Cash payments for land held for resale | (3, 137, 657) | ||
| Proceeds on disposal of financial assets at fair value through profit or loss | 336,468 | 1,172,461 | |
| Payment for financial assets at fair value through profit or loss | (255, 267) | (59,000) | |
| Interest received | 5,919,444 | 6,301.556 | |
| Interest paid | (946, 819) | (704, 714) | |
| Dividends received | 216,644 | 573,171 | |
| Income taxes paid | (614, 720) | (2,701,118) | |
| Net cash flows provided by operating activities | 5(b) | 852,333 | 1,544.721 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Payments for capital expenditure for investment properties | (808, 355) | (501, 872) | |
| Payments for property, plant and equipment | (101, 901) | (11,609) | |
| Payments for investment properties | (9,400,000) | ||
| Payments for equity investments | (9,347,870) | (19,394,556) | |
| Proceeds on disposal of equity investments | 26,942,254 | 16,996,226 | |
| Proceeds on disposal of controlled entities, net of cash disposed | 1,000 | 50 | |
| Loans provided | (5,810,696) | (11,576,170) | |
| Loans repaid | 10,975,817 | 11,120,405 | |
| Net cash flows provided by/(used in) investing activities | 12,450,249 | (3,367,526) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Repayment of borrowings | (2,448,587) | ||
| Proceeds from borrowings | 5,427,710 | ||
| Dividends paid | (3,637,838) | (4,019,495) | |
| Payments for share buybacks | (788, 153) | (450.593) | |
| Net cash flows used in financing activities | (1,446,868) | (4,470,088) | |
| Net increase/(decrease) in cash held | 11,855,714 | (6, 292, 893) | |
| Foreign exchange gain on cash | 58,065 | 240,170 | |
| Cash at the beginning of the half-year | 27,601,321 | 43,458,535 | |
| CASH AT THE END OF THE HALF-YEAR | 5(a) | 39,515,100 | 37,405,812 |
The above statement of cash flows should be read in conjunction with the accompanying notes to the Half-Year Report.
$\overline{\phantom{a}}$
NOTE 1: BASIS OF PREPARATION
The half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of AASB 134 Interim Financial Reporting and the Corporations Act 2001.
This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 30 June 2013 and any public announcements made by CVC during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
Certain comparatives balances have been changed in order to achieve consistency and comparability with the current period's amounts.
| 31 Dec 2013 | 31 Dec 2012 | |
|---|---|---|
| S | \$ | |
| NOTE 2: INCOME TAX EXPENSE | ||
| Income tax expense: | ||
| Prima facie income tax expense at 30% on profit before income tax | 3.729,189 | 3,393,942 |
| Increase in income tax expense due to: | ||
| Sundry items | 34.381 | 32,733 |
| Trust loss not deductible | 45,297 | |
| Decrease in income tax expense due to: | ||
| Franked dividends received | (20,970) | (111.936) |
| Trust profit not assessable | (165, 835) | |
| Sundry items | (58, 932) | |
| Tax losses recouped | (472, 436) | |
| Deferred tax balances not recognised | (3,300,504) | (2,446,403) |
| (43, 975) | 702,501 | |
| Adjustment in respect of current income tax of previous years | (65,325) | 8,810 |
| Income tax (benefit)/expense for the half-year | (109,300) | 711,311 |
NOTE 3: DIVIDENDS
Dividends proposed or paid and not provided for in previous periods by CVC are:
CVC paid a final dividend of 3 cents per share on 17 September 2013 in respect of the year ended 30 June 2013.
On 14 February 2014, CVC declared an interim dividend of 2 cents per share and a special dividend of 5 cents per share to be paid on 5 March 2014 to shareholders registered on 25 February 2014.
| 31 Dec 2013 | 30 Jun 2013 | |
|---|---|---|
| Dividend franking account | ||
| Franking credits available to shareholders for subsequent financial vears | 15.055.998 | 16,664.374 |
The franking account is stated on a tax paid basis. The balance comprises the franking account at year-end adjusted for: franking credits that will arise from the payment of the amount of the provision for income tax $(a)$
franking debits that will arise from the refund of overpaid tax instalments paid $(b)$
franking debits that will arise from the payment of dividends recognised as a liability at the reporting date $(c)$
franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date $(d)$
franking credits that the entity may be prevented from distributing in subsequent years. $(e)$
The ability to utilise the franking credits is dependent upon there being sufficient available profits to declare dividends.
| 31 Dec 2013 | 31 Dec 2012 |
|---|---|
| Cents | Cents |
| 9.31 | 7.62 |
| 9.31 | 7.62 |
| \$ | \$ |
| 12,539,930 | 10,601,828 |
| (1.249, 494) | (1.291, 716) |
| 11,290,436 | 9,310.112 |
| Number of Shares | |
122,132,253 121,216,636 Weighted average number of ordinary shares - Basic and Diluted 121,040,608 121,867,975 Number of shares on issue at the end of the half-year
NOTE 5: NOTES TO THE CASH FLOW STATEMENT
(a) Reconciliation of Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash includes cash on hand and at bank and short-term deposits at call. Cash as at the end of the interim reporting period is reconciled to the related items in the statement of financial position as follows:
| 31 Dec 2013 | 30 Jun 2013 | |
|---|---|---|
| \$ | S | |
| Cash on deposit | 39,186,533 | 24,251,321 |
| Funds held by bank | 328,567 | 3,350,000 |
| Cash and cash equivalents | 39,515,100 | 27,601,321 |
(b) Reconciliation of profit after income tax to the net cash provided by/ (used in) operating activities:
| 31 Dec 2013 | 31 Dec 2012 | |
|---|---|---|
| S | \$ | |
| Profit after income tax | 12,539,930 | 10,601,828 |
| Add/(less) non-cash items: | ||
| Share of equity accounted (profits)/losses | (2.078, 726) | 1,110,016 |
| Depreciation and amortisation of plant and equipment | 274,136 | 242,619 |
| Bad debts written off | 5.150 | |
| Non-cash employee benefits expense-share based payments | 3,179 | (203, 347) |
| Impairment expenses on financial instruments | 1,580,259 | 2,092,675 |
| Impairment recoveries | (6.754, 254) | (8,584,962) |
| Net profit on disposal of investments | (2.052,726) | (373, 505) |
| Net change in fair value of investment properties | 1,036,596 | 266,748 |
| Interest income not received | 2,396,455 | 1,563,997 |
| Interest expense not paid | 542,317 | 586,420 |
| Dividend income | 10,582 | (58,992) |
| Foreign exchange profit on cash | (58,065) | (240, 170) |
| Movement in income tax provision | (664, 573) | (1,992,699) |
| Movement in deferred tax assets and liabilities | (60.042) | 2.336 |
| Changes in assets and liabilities: | ||
| Inventories | (5, 127, 934) | (4,426,128) |
| Financial assets at fair value through profit or loss | 81.202 | 1,113,461 |
| Trade and other receivables | (4.851.613) | (4,670,833) |
| Trade and other payables | 4,556,599 | 4,437,760 |
| Provisions | (7,991) | (66, 249) |
| Other assets | (512,998) | 138,596 |
| Net cash provided by operating activities | 852,333 | 1,544,721 |
| 31 Dec 2013 | 30 Jun 2013 | |
|---|---|---|
| \$ | 5 | |
| NOTE 6: LOANS AND OTHER RECEIVABLES | ||
| Current | ||
| Trade receivables | 18,239,896 | 12,581,785 |
| Allowance for impairment loss | (87, 175) | (112, 042) |
| Other receivables and prepayments | 1,078,274 | 1,661,577 |
| Loans to related entities | 2,727,054 | 7,778,008 |
| Impairment of loans to related entities | (2,541,992) | |
| Loans to other corporations | 18,739,739 | 25,614,656 |
| 40,697,788 | 44,981,992 | |
| Non-Current | ||
| Loans to related entities | 2,037,598 | 3,301,666 |
| Loans to associated entities | 2,011,098 | 1,937,613 |
| Loans to other corporations | 3,707,835 | 4,258,470 |
| Impairment of loans to other corporations | (60, 871) | (76, 689) |
| 7,695,660 | 9,421,060 | |
NOTE 7: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
| Equity accounted shares in listed associated companies | $\overline{\phantom{0}}$ | 19.968.174 |
|---|---|---|
| Equity accounted shares in other associated companies | 18.670.953 | 25.925.116 |
| 18.670.953 | 45,893,290 |
Associated entities
Details of associated entities are as follows:
| net profit/(loss) | Contribution to | ||||
|---|---|---|---|---|---|
| 30 Jun 13 | 31 Dec 13 | 30 Jun 13 | 31 Dec 13 | 31 Dec 12 | |
| \$ | \$ | \$ | \$ | ||
| 49.0 | 49.0 | 961,600 | (143, 307) | ||
| n/a | 23.5 | 569,100 | - | 1,631 | |
| n/a | 50.0 | ||||
| (868, 532) | |||||
| 43.5 | 43.5 | 3.058,931 | 11,576,609 | 836,940 | (1,121,865) |
| 50.0 | 50.0 | 40,304 | (40.305) | ||
| 50.0 | 50.0 | 14,286,717 | 13,360,265 | 926,451 | 1,046,821 |
| 50.0 | 50.0 | 363,705 | 378,838 | (15, 132) | 58,253 |
| n/a | 23.9 | 19.968,174 | 514,079 | (226, 324) | |
| 18,670,953 | 45.893,290 | 2,078,726 | (1,110,016) | ||
| % Ownership at end of half-year 31 Dec 13 |
Carrving value |
(a) JAK Investment Group Pty Ltd, Ron Finemore Transport Pty Limited and Everten Group Pty Limited are not considered to be controlled entities of CVC as management of the companies is controlled by the holders of the remaining 50%.
CVC's holding in Villa World Limited fell below 20% on 4 November 2013. CVC ceased equity accounting effective 4 $(b)$ November 2013.
| 31 Dec 2013 | 30 Jun 2013 | |
|---|---|---|
| \$ | \$ | |
| NOTE 8: FINANCIAL ASSETS - "AVAILABLE-FOR-SALE" | ||
| Current | ||
| Other investments - at cost | 3,606,974 | |
| Non-Current | ||
| Shares in listed corporations - at market value | 72,907,321 | 33,697,114 |
| Other investments - at cost | 7,048,247 | 8,949,079 |
| Impairment of other investments - at cost | (2,078,294) | (2.035,581) |
| Public unlisted investments - at market value | 1,185,333 | 1,006,264 |
| Other investments - at market value | 302,862 | 302,862 |
| Impairment of other investments - at market value | (302, 862) | (302, 862) |
| 79,062,607 | 41,616,876 | |
| NOTE 9: FINANCIAL ASSETS - "AT FAIR VALUE THROUGH PROFIT OR LOSS" Current |
||
| Shares in listed corporations - at market value | 1,641,133 | 2,025,775 |
| NOTE 10: INVESTMENT PROPERTIES | ||
| Investment properties | 55,071,189 | 52,588,212 |
| Reconciliation: | ||
| Investment properties at beginning of the half-year | 52,588,212 | 38,250,000 |
| Additions - acquisition of properties | 4,900,000 | 13,820,154 |
| Additions - capital expenditure | 2,219,573 | 994,077 |
| Reclassification to held for sale | (3,600,000) (1.036, 596) |
(476, 019) |
| Fair value adjustment | ||
| Total investment properties at the end of the half-year | 55,071.189 | 52,588,212 |
| NOTE 11: PROPERTY, PLANT AND EQUIPMENT | ||
| Total property, plant and equipment | 3,516,062 | 3,688,297 |
| Plant and equipment: | ||
| At cost | 2,051,083 | 2,168,461 |
| Accumulated depreciation | (629,980) | (575, 123) |
| Total plant and equipment | 1,421,103 | 1,593,338 |
| Properties: | ||
| At cost | 94,959 | 94,95 |
| At fair value | 2,000,000 | 2,000,00 |
| Total properties | 2,094,959 | 2,094,95 |
| 31 Dec 2013 | 30 Jun 2013 \$ |
|
|---|---|---|
| NOTE 11: PROPERTY, PLANT AND EQUIPMENT (CONT.) | ||
| Reconciliation: | ||
| Plant and equipment: | ||
| Carrying amount at the beginning of the half-year | 1,593,338 | 2,036,320 |
| Additions | 102,419 | 62,077 |
| Disposals | (518) | (18,027) |
| Depreciation | (274, 136) | (487,032) |
| Carrying amount at the end of the half-year | 1,421,103 | 1,593,338 |
| Properties: | ||
| Carrying amount at the beginning of the half-year Additions |
2.094,959 | 2,092,396 2,563 |
| Carrying amount at the end of the half-year | 2,094,959 | 2,094,959 |
| NOTE 12: INVENTORIES | ||
| Current | ||
| Stock on hand | 22,588,213 | 13,733,060 |
| Stock in transit | 737,932 | 185,501 |
| Provision for obsolescence | (2,286,074) | (2,636,588) |
| Land and development held for resale | 8,249,472 | 9,899,635 |
| Total inventories at the lower of cost and net realisable value | 29,289,543 | 21.181.608 |
Inventories recognised as an expense for the period ended 31 December 2013 totalled \$48,584,204 (2012: \$34,035,940). This expense has been included in the cost of goods sold in the Statement of Financial Performance.
NOTE 13: ASSETS HELD FOR SALE
Description $(a)$
$\frac{1}{4}$ l,
d
J.
Ĵ
Asset classified as held for sale comprise the property at 1 Narabang Way, Belrose. Subsequent to the end of the period, on 28 January 2014 an unconditional sale contract was signed with a settlement date of 28 February 2014.
(b) Carrying amounts of assets and liabilities
The only asset classified as held for sale at the balance date is:
| 31 Dec 2013 æ |
30 Jun 2013 | |
|---|---|---|
| Investment Property | 3,600,000 | - |
| 31 Dec 2013 \$ |
30 Jun 2013 \$ |
||
|---|---|---|---|
| NOTE 14: TRADE AND OTHER PAYABLES | |||
| Current | |||
| Trade and other payables | 12,827,621 | 8,964,066 | |
| Investment property settlement | 4,702,500 | ||
| Sundry creditors and accruals | 5,569,545 | 4,633,639 | |
| 18,397,166 | 18,300,205 | ||
| Non-current | |||
| Trade and other payables | 231,903 | 231,903 | |
| NOTE 15: INTEREST-BEARING LOANS AND BORROWINGS | |||
| Current | |||
| Unsecured loan | 250,000 | ||
| Secured bank loan | 2,455,083 | 4,568,700 | |
| Trade finance facility | 5,566,908 | 474,168 | |
| 8,271,991 | 5,042,868 | ||
| Non-current | 24,700,000 | 24,700,000 | |
| Secured bank loans Unsecured loan from associated entity |
10,339,995 | 9,868,515 | |
| 35,039,995 | 34,568,515 | ||
| NOTE 16: PROVISIONS | |||
| Current | |||
| Maintenance warranties | 40,000 | 40,000 | |
| Employee entitlements | 1,052,711 | 959,542 | |
| 1,092,711 | 999,542 | ||
| Non-current | |||
| Maintenance warranties | 90,000 | 90,000 | |
| Employee entitlements Contingent liability |
482,844 100,000 |
584,004 100,000 |
|
| 672.844 | 774,004 | ||
| 31 Dec 2013 Number |
\$ | 31 Dec 2012 Number \$ |
|
| NOTE 17: CONTRIBUTED EQUITY | |||
| Issued and paid-up ordinary share capital Balance at the beginning of the half-year |
121,421,485 | 105,935,045 | 106,813,787 122,336,368 |
| Shares bought back on market | (380, 877) | (411,898) | (422, 334) (468, 393) |
| Balance at the end of the half-year | 121,040,608 | 105,523,147 | 106,391,453 121,867,975 |
| 31 Dec 2013 | 31 Dec 2012 | |
|---|---|---|
| \$ | S | |
| NOTE 18: RETAINED PROFITS | ||
| Balance at the beginning of the half-year | 54,864,508 | 51,680,929 |
| Net profit attributable to shareholders | 11,290,436 | 9,310,112 |
| Dividends | (3.637.838) | (3,669,197) |
| Balance at the end of the half-year | 62,517,106 | 57,321,844 |
NOTE 19: OTHER RESERVES
đ
$\frac{1}{2}$
| Employee | ||||
|---|---|---|---|---|
| Asset | Equity | Foreign | ||
| Revaluation | Benefit | Exchange | ||
| Reserve | Reserve | Reserve | Total | |
| \$ | \$ | \$ | \$ | |
| Half-year ended 31 December 2013: | ||||
| Balance at the beginning of the half-year | 10,698,989 | 198,585 | 267,011 | 11,164,585 |
| Equity accounted share of associates reserves | 18,542 | 18,542 | ||
| Share based payments | 13,060 | 13,060 | ||
| Net unrealised gain/(loss) on "available-for-sale" investments | 23,796,143 | 308,586 | 24, 104, 729 | |
| Net unrealised gain on "available-for-sale" investments - non- | ||||
| controlling interest | (104, 187) | (102, 349) | (206, 536) | |
| Acquisition of interest in controlled entities | (508, 291) | (508, 291) | ||
| Realised gain on "available-for-sale" investments reclassified | ||||
| to the income statement | (3,251,922) | (67, 893) | (3,319,815) | |
| Realised gain on "available-for-sale" investments reclassified | ||||
| to the income statement - non-controlling interest | 807 | 807 | ||
| Balance at the end of the half-year | 30,631,539 | 230.187 | 405,355 | 31,267,081 |
| Half-year ended 31 December 2012: | ||||
| Balance at the beginning of the half-year | (66, 813) | 320,402 | (239) | 253,350 |
| Equity accounted share of associates reserves | (9,301) | (61, 626) | (70, 927) | |
| Share based payments | (90, 528) | (90, 528) | ||
| Net unrealised gain/(loss) on "available-for-sale" investments | 1,924,627 | (40, 556) | 1,884,071 | |
| Net unrealised gain on "available-for-sale" investments - non- | ||||
| controlling interest | 141,877 | 5,678 | 147,555 | |
| Acquisition of interest in controlled entities | 285,082 | 285,082 | ||
| Realised gain on "available-for-sale" investments reclassified | ||||
| to the income statement | 84,636 | 84,686 | ||
| Realised gain on "available-for-sale" investments reclassified | ||||
| to the income statement - non-controlling interest | 4,457 | 4,457 | ||
| Balance at the end of the half-year | 2,364,615 | 168,248 | (35, 117) | 2,497,746 |
| 31 Dec 2013 | 31 Dec 2012 | |||
| NOTE 20: ASSETS PER SECURITY | ||||
| \$ | \$ | |||
| Net assets per share attributable to members of the parent entity | 1.65 | 1.36 |
The figures above are calculated based on the consolidated financial position of CVC Limited.
Net tangible assets per share attributable to members of the parent entity
1.36
$1.65$
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013 (CONTINUED) CVC LIMITED & CONTROLLED ENTITIES
NOTE 21: SEGMENT REPORTING
The revenues and results by business segments are as follows:
| Venture ÷A Equity and Capital Private |
Investments e9 Listed |
Property | Funds Management |
Trading Operations ↔ Consolidated |
Eliminations ⊷ Controlled |
÷ Consolidated |
|
|---|---|---|---|---|---|---|---|
| Total revenue for reportable segments Half-year ended 31 December 2013: Inter-segment revenue Revenues: |
402,426 | 7,698,182 | 10,722,910 2,549,088 |
1,164,118 4,242,031 |
54,579,791 | (6,791.119) | 74,567,427 |
| Unallocated amounts: interest income | 436,791 | ||||||
| Consolidated revenue | 75,004,218 |
||||||
| Equity accounted income | 1,748,259 | 514,079 | (183, 612) | 2,078,726 | |||
| Share of profit(loss) of equity accounted investees Total profit for reportable segments Results: |
402,426 1,748,259 |
6,118,702 514,079 |
2,648,839 | 1,163,338 (183, 612) |
2,176,933 | 12,510,238 2,078,726 |
|
| 2,150,685 | 6,632,781 | 2,648,839 | 979,726 | 2,176,933 | 14,588,964 | ||
| Unallocated amounts: corporate expenses | (2,158,334) | ||||||
| Consolidated profit before tax | 12,430,630 |
$18$
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013 (CONTINUED) CVC LIMITED & CONTROLLED ENTITIES
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NOTE 21: SEGMENT REPORTING (CONT.)
Private
| Capital Venture Equity and |
Investments ₩ Listed |
Property | Management ÷ Funds |
Trading Operations Consolidated |
Eliminations ÷Ą Controlled |
Consolidated ↔ |
|
|---|---|---|---|---|---|---|---|
| Half-year ended 31 December 2012: | |||||||
| Total revenue for reportable segments Inter-segment revenue Revenues: |
7,145,336 | 1,917,198 | 1,899,185 5,524,562 |
1,113,387 3,280,831 |
45,914,496 | (5,180,016) | 61,614,979 |
| Unallocated amounts: interest income | 843,315 | ||||||
| Consolidated revenue | 62,458,294 | ||||||
| Equity accounted income | (885,323) | (226,324) | 1,631 | (1, 110, 016) | |||
| Share of profit/(loss) of equity accounted investees Total profit for reportable segments Results. |
7,145,336 (885,323) |
378,949 (226, 324) |
3,118,642 | 1,107,344 1,631 |
2,363,808 | 14,114,079 (1, 110, 016) |
|
| 6,260,013 | 152,625 | 3,118,642 | 1,108,975 | 2,363,808 | 13,004,063 | ||
| Unallocated amounts: corporate expenses | (1,690,924) | ||||||
| Consolidated profit before tax | 11,313,139 |
Segment results are shown before related income tax expense.
$\overline{19}$
NOTE 22: SUBSEQUENT EVENTS
Since the end of the period, the directors have determined to pay an interim dividend of 2 cents per share and a special dividend of 5 cents per share, fully franked, payable on 5 March 2014.
There are no other matters or circumstances that have arisen since the end of the financial period which significantly affected or may significantly affect the operations of CVC, the results of those operations or the state of affairs of CVC in the financial period subsequent to 31 December 2013.
CVC LIMITED & CONTROLLED ENTITIES HALF YEARLY REPORT
DIRECTORS' DECLARATION
In the opinion of the directors:
- the interim financial statements and notes set out on pages 5 to 20, are in accordance with the Corporations Act $(a)$ 2001 including:
- giving a true and fair view of the consolidated entity's financial position as at 31 December 2013 and of its $(i)$ performance for the half-year ended on that date; and
- complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations $(ii)$ 2001.
- there are reasonable grounds to believe that CVC Limited will be able to pay its debts as when they become due $(b)$ and payable.
Dated at Sydney this 28th day of February 2014.
Signed in accordance with a resolution of the board of directors.
XEAD JOHN Chair
ANDERD. H. BEARD Director
Accountants | Business and Financial Advisers
CVC LIMITED
AUDITOR'S INDEPENDENCE DECLARATION
To the Directors of CVC Limited:
As lead auditor for the review of the financial report of CVC Limited for the half-year ended 31 December 2013, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
b) any applicable code of professional conduct in relation to the review.
This declaration is in respect of CVC Limited and the entities it controlled during the period.
M. MuMu
Sydney, NSW 28 February 2014
MD Muller Partner
HLB Mann Judd (NSW Partnership) ABN 34 482 821 289
Level 19 207 Kent Street Sydney NSW 2000 Australia | Telephone +61 (0)2 9020 4000 | Fax +61 (0)2 9020 4190 Email: [email protected] | Website: www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (NSW Partnership) is a member of HLBS International. A world-wide network of independent accounting firms and business advisers.
Accountants | Business and Financial Advisers
CVC LIMITED
INDEPENDENT AUDITOR'S REPORT
To the members of CVC Limited:
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of CVC Limited ("the Company") which comprises the condensed consolidated statement of financial position as at 31 December 2013, the condensed consolidated statement of financial performance, the condensed consolidated statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory notes and the directors' declaration, for the consolidated entity comprising the Company and the entities it controlled at the half-year end or from time to time during the half-year.
Directors' Responsibility for the Half-Year Financial Report
The directors of CVC Limited, are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2013 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of the Fund. ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
HLB Mann Judd (NSW Partnership) ABN 34 482 821 289
Level 19 207 Kent Street Sydney NSW 2000 Australia | Telephone +61 (0)2 9020 4000 | Fax +61 (0)2 9020 4190 Email: [email protected] | Website: www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (NSW Partnership) is a member of HJB International. A world-wide network of independent accounting firms and business advisers.
CVC LIMITED
INDEPENDENT AUDITOR'S REPORT (contined)
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of CVC Limited is not in accordance with the Corporations Act 2001 including:
- giving a true and fair view of the consolidated entity's financial position as at 31 December 2013 $(a)$ and of its performance for the half-year ended on that date; and
- complying with Accounting Standard AASB 134 Interim Financial Reporting and the $(b)$ Corporations Regulations 2001.
HLB Marn full
HLB Mann Judd Chartered Accountants
M. MuMe
MD Muller Partner
Sydney, NSW 28 February 2014