CVC Reports $7.7 Million Net Profit with $37.8 Million Laverton Gain and Liverpool Impairment

Laverton Sale Drives Profit Surge and Special Dividend

CVC Limited (ASX:CVC) delivered a standout FY2026 financial performance, reporting a net profit after tax of $7.7 million, a substantial increase from $1.2 million in the prior year. A key driver was the sale of the Laverton site, which generated a pre-tax profit attributable to shareholders of $37.8 million. This windfall enabled the company to pay a fully franked special dividend of 5 cents per share, a notable return to shareholders after no dividends were declared in FY2025.

Liverpool Project Impairment and Option Lapse

However, not all news was positive. CVC recognised a $13.3 million impairment related to its Liverpool project following the NSW Government's decision not to proceed with the proposed residential rezoning. The company and vendor agreed to let the option contract lapse, avoiding a $124 million settlement obligation and instead securing approximately $46 million in refunds and break fees payable over the next several months. This outcome materially strengthens CVC’s balance sheet and liquidity, cushioning the impact of the impairment and providing greater flexibility to support other projects.

Capital and Debt Management Strengthened

CVC also refinanced and expanded its listed corporate note program, issuing $75 million in CVC Notes 3 with maturity in December 2028 and an interest margin of 4.5% over 3-month BBSW. The company generated strong cash inflows from project sales and refinancing activities, including $43 million from Laverton and $9.6 million from Clyde North lot settlements. These moves underpin CVC’s disciplined capital management approach, aiming to reduce gearing and maintain liquidity amid challenging market conditions.

Progress on Key Property Developments

Beyond financials, CVC continues to advance its strategic land portfolio. Planning progress includes the public exhibition of the Marsden Park North rezoning, the commencement of the Truganina Precinct Structure Plan, and lodgement of the Officer South planning permit application. The company secured a conditional sale of a 19-hectare super lot at Donnybrook, expected to settle in FY2028, which will generate significant profit and facilitate debt reduction. Meanwhile, mixed-use and industrial projects across Victoria, New South Wales, and Queensland remain active, with investments totalling $28.6 million during the year.

Leadership Changes Signal Strategic Focus

FY2026 saw notable leadership changes. Mark Avery resigned as Managing Director and Company Secretary on 30 June 2026. Craig Treasure, previously Executive Chairman, assumed the Managing Director role from 1 July 2026, with his salary increasing to $725,000 per annum. Dr Andrew Ashwood was appointed Executive Director and CEO simultaneously, bringing over 20 years of property development and strategic leadership experience. These appointments align with CVC’s focus on navigating complex planning processes and unlocking value from its land portfolio.

Portfolio Confidence Amid Market Challenges

Despite the mixed outcomes, the Board expressed confidence in the portfolio's long-term value, anticipating that most projects will become liquid over the next three to four years as planning and rezoning approvals materialise. The company remains committed to realising these assets through sales, joint ventures, or development, while maintaining capital discipline and reducing non-property investments. Market conditions remain uncertain, but CVC’s strengthened balance sheet and cash position provide a solid foundation to progress its growth strategy in FY2027.