February saw most of our domestic portfolio companies release their half or full year results. The results were generally positive with the companies reporting solid sales and EPS growth. While some of the companies cited adverse macroeconomic conditions and other short-term challenges, we maintain a long-term perspective of a company’s performance and growth potential. REA-AU performed particularly well, delivering a strong result despite a backdrop of challenging domestic property market conditions, further highlighting the strong value proposition the company offers all stakeholders.
We remain confident that the companies in the portfolios will achieve attractive rates of revenue, EPS and DPS growth over the next five years, well ahead of the broader market.
|3 years p.a.||9.3||13.4||-4.1|
|5 years p.a.||9.2||7.7||1.5|
|10 years p.a.||17.8||9.4||8.4|
Top 5 Stock Holdings
|Portfolio (%)||Benchmark* (%)|
|Corporate Travel Management||6.1||1.2|
* Benchmark is the S&P/ASX Small Ordinaries Accumulation Index.
Past performance is not a reliable indicator of future performance.
Nick Scali Limited (NCK-AU) released a market update for the first half of FY19, reporting sales revenue growth of 10% to $141m, gross margin expansion of 21bps to 63%, and NPAT growth of 8% to $25m. During the period the company successfully launched a bedroom and bedding category across 24 stores. In addition, it opened 4 new stores during the first half of FY19 and 6 stores during FY18, all contributing to the strong result. 3 of the 4 new stores were opened across Queensland with the company opening its second store in New Zealand in the city of Hamilton. NCK-AU now expects to open a further 2 stores during the second half of FY19, taking the total store count to 57 by the end of the financial year.
Pushpay Holdings Limited (PPH-AU) released a market updated for the third quarter ending 31 December 2018, reporting total revenue growth of 35% to $28m. Annualised processing volume increased 29% to $5b, with the average revenue per customer increasing 26% to $1,548 per month. The company’s customer base was up 6% to 7,585 customers, with 56 of the 100 largest churches in the U.S. using Pushpay’s digital giving solution. Management reiterated FY19 guidance for revenue of between $97.5m to $100.5m and for the full year gross margin to be greater than 60%.
OBJECTIVE: MEDIUM TO LONG-TERM CAPITAL GROWTH AND INCOME THROUGH INVESTING IN HIGH CALIBRE AUSTRALIAN COMPANIES PRIMARILY LISTED OUTSIDE THE S&P/ASX 100 AT THE TIME OF INVESTMENT.
Hyperion named AUSTRALIAN FUND MANAGER OF THE YEAR in the Morningstar 2016 Awards, Australia.