London City Reports Record Net Assets After Fiducian Exit
London City Equities has boosted its net assets to a record $29 million for FY2026, driven by the sale of its Fiducian Group stake and the completion of Excelsior Capital’s liquidation.
- Net assets rise to $29.03 million
- Fiducian Group stake sold for $21 million
- Excelsior Capital liquidation returns over $8 million
- Cash holdings more than double to $25 million
- Net assets per share increase to 91.4 cents
Record Net Assets and Cash Position
London City Equities (ASX:LCE) has reported a very satisfactory financial year ending 30 June 2026, with net assets climbing to a record $29.03 million, up from $24.62 million the prior year. Cash and cash equivalents more than doubled to $25.15 million, reflecting a significant shift towards liquidity, while net assets per share rose to 91.4 cents from 78.6 cents.
Fiducian Group Stake Fully Divested
The company completed the sale of its remaining 7% shareholding in Fiducian Group in October 2025, realising total proceeds of approximately $21 million. This final tranche generated a capital gain of $5.6 million, capping a two-decade investment relationship. London City’s directors praised Fiducian’s board and management but cited strong stock-market conditions and an overweight portfolio position as reasons for the exit. This move underscores London City’s disciplined investment criteria and portfolio management approach.
Excelsior Capital Liquidation Yields Dividends
London City also finalised the internally managed liquidation of its 9% holding in Excelsior Capital, receiving over $8 million in fully franked dividends during March and April 2026. This followed a Federal Court action that led to an agreement for Excelsior to liquidate and return funds to shareholders. Although the final capital return fell below London City’s book cost, the directors view the dividend payouts and franking credits as compensating for any adverse impact. The company awaits further updates on remaining funds from the liquidation process.
Portfolio Adjustments and Outlook
The investment portfolio’s equity holdings decreased to $3.7 million from $14.6 million in the previous year, reflecting the strategic divestments. The company’s focus on liquid, bank-related assets positions it well to pursue new long-term investments. London City’s net gain during the year was $4.965 million, supported by income and capital gains despite a reduction in future income tax benefits.
Governance and Next Steps
These preliminary unaudited results have been submitted for audit by HLB Mann Judd. Chairman Peter EJ Murray highlighted the record asset and profit levels as a positive milestone. Investors will be keen to see the final audited figures and any strategic guidance on how London City plans to deploy its increased liquidity in the coming year.
Bottom Line?
London City’s FY2026 results mark a clear pivot towards liquidity and capital realisation, setting the stage for potential new investments once the audit confirms these preliminary gains.
Questions in the middle?
- How will London City redeploy its record cash reserves post-Fiducian exit?
- What timing and scale are expected for the remaining funds from Excelsior Capital’s liquidation?
- Will London City adjust its dividend policy following these significant asset sales?
