August saw the majority of the domestic portfolio holdings report their full year results, which were generally in line with our expectations. In general, the market struggled to achieve expected top line growth outside of the resources sector. Accordingly, high PE companies that didn’t exceed short term expectations observed aggressive share price reactions. In contrast to the broader market, the portfolios generated double digit revenue, EPS and DPS growth with a theme of continued reinvestment for long term growth. Despite some short term challenges, portfolio fundamentals remain robust and we expect them to continue to achieve above market growth over the longer term. 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.||8.3||8.4||-0.2|
|5 years p.a.||11.3||7.8||3.5|
|7 years p.a.||15.5||7.2||8.3|
|10 years p.a.||13.7||4.8||8.9|
|15 years p.a.||14.0||5.6||8.4|
|Since Inception** p.a.||15.3||7.4||7.9|
Top 5 Stock Holdings
|Portfolio (%)||Benchmark* (%)|
* Benchmark is the S&P/ASX Small Ordinaries Accumulation Index.
** Inception 30th September 2002
^ Total Return
Past performance is not a reliable indicator of future performance.
Nanosonics Limited (NAN-AU) released its annual results for the financial year ended 30 June 2019, reporting revenue growth of 39% to $84.3m, profit before tax growth of 201% to $16.8m and profit after tax growth of 137% to $13.6m. Divisionally, Capital Revenue was up 28% to $32.8m, whilst its annuity-style revenue stream of Consumables & Services was up 47% to $51.5m. Geographically, revenue in North America was up 41% to $76.5m, EMEA was up 27% to $3.8m and APAC revenue increased 21% to $4m. In addition, the company’s installed base achieved global growth of 18% to 20,930 units, regionally comprised of North America +19% to 18,570 units, EMEA +21% to 880 units and APAC +6% to 1,480 units. NAN-AU expects to see continued growth of its trophon installed base across all core markets, as new guidelines continue to require High-Level Disinfection of all semi-critical ultrasound probes. The company also announced that it will continue to increase R&D investment in order to build a pipeline of new potential products with the first due to be released by the end of FY20 (subject to regulatory approval).
WiseTech Global Limited (WTC-AU) reported its full year results for the financial year ended 30 June 2019, reporting revenue growth of 57% to $348m, operating profit growth of 37% to $80m and EPS growth of 27% to 17.7 cents per share. During the year, the power and strength of WTC-AU’s CargoWise One platform was supported by its 99% recurring revenue as the company maintained an impressive annual customer attrition rate of less than 1% across its CargoWise One platform for a 7th consecutive year. Furthermore, WTC-AU continued to improve its value proposition to customers, adding over 830 internally developed product enhancements and features to its flagship CargoWise One technology platform, with 47% of its workforce contributing towards product development. The company also acquired 15 strategic assets in new geographies and adjacent technologies to accelerate future growth. WTC-AU’s product is now present in approximately 150 countries with all top 25 global freight forwarders now customers, 7 of which now exclusively use CargoWise. Management has guided FY20 revenue growth of between 26% to 32% and EBITDA growth of between 34% to 42%.
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.