CVC Limited Posts $6.7M Loss, Boosts Cash to $51M After Refinancing

Half-Year Financial Performance

CVC Limited has reported a significant deterioration in its financial results for the half-year ended 31 December 2025, posting a net loss after tax attributable to shareholders of $6.7 million. This compares unfavourably with the $1.6 million loss recorded in the corresponding period a year earlier. The widening loss primarily reflects the absence of material property realisations, which historically have provided the income necessary to offset interest expenses, overheads, and holding costs.

Property Portfolio Challenges

The property segment was notably impacted by a $2.4 million impairment related to a residential townhouse development in Melbourne. This impairment was driven by extended sales programs, longer construction timelines, increased costs, and higher holding expenses associated with project delays. Despite these setbacks, the Board maintains that the reported loss does not fully capture the underlying progress of the portfolio, emphasizing that value created will be recognised upon asset divestments.

Liquidity and Refinancing Efforts

On a positive note, CVC has successfully refinanced two bank loans and its loan notes during the period, resulting in a strengthened liquidity position. Cash and cash equivalents stood at over $51 million as at 31 December 2025, providing the company with enhanced capacity to meet ongoing obligations and support asset optimisation. The refinancing includes the issuance of $75 million in new unsecured loan notes with a maturity date in December 2028, replacing previous notes.

Strategic Outlook and Capital Management

The Board has resolved not to pay an interim dividend for the half-year, citing future cash flow commitments and capital management priorities. CVC’s portfolio remains anchored by significant landholdings across New South Wales, Queensland, and Victoria, with ongoing planning, rezoning, and repositioning activities. The Board is optimistic about asset realisations and value uplifts expected in the second half of FY2026, although no full-year profit guidance has been provided due to the nature of the portfolio and accounting treatments.

Looking Ahead

While the current financial results highlight near-term challenges, CVC’s management and Board express confidence in the long-term potential of their assets. The company’s focus remains on active portfolio management, balancing value maximisation with liquidity needs, and progressing key divestment milestones as market conditions permit.