CVC builds an $87.7m cash buffer after property exits and refinancing

Laverton sale and refinancing lift CVC’s cash position

CVC Limited (ASX:CVC) has finished FY26 with a much stronger cash position, but the year’s headline improvement was driven by property transactions rather than a smooth rise in recurring earnings. Cash and cash equivalents climbed to $87.7 million from $13.0 million, helped by the sale of the Laverton North site, Clyde North lot settlements and refinancing across the group.

The Laverton transaction generated a $37.8 million profit before tax attributable to shareholders and supported the fully franked 5-cent-per-share special dividend paid in April. The result was also accompanied by the earlier Laverton special dividend, which was driven by proceeds from that property sale.

Revenue rose to $212.2 million from $44.2 million, while underlying NPAT increased to $7.7 million from $1.2 million. Statutory NPAT attributable to CVC shareholders was $2.2 million, up from $0.5 million, after $5.5 million of profit was allocated to non-controlling interests. The distinction matters: the group’s large development sales did not translate one-for-one into earnings available to CVC’s ordinary shareholders.

Moorebank exit converts a major funding risk into expected cash inflows

The most consequential balance-sheet decision was the agreement not to exercise the put and call options over the 1 Heathcote Road property at Moorebank, New South Wales. The arrangement follows the abandonment of the proposed rezoning pathway and a recognised impairment of approximately $13.3 million against capitalised project costs.

In exchange for allowing the option deed to lapse from 1 September 2026, the vendor is required to make payments totalling about $46 million, comprising refunds of deposits and guarantor release payments plus an additional payment. Those amounts are expected to be paid progressively from September 2026 to January 2027. The decision removes the requirement to fund a settlement of approximately $124 million, plus stamp duty and associated costs. The earlier Moorebank option lapse had already outlined the expected refund and write-down.

CVC’s total borrowings increased to $224.8 million at year-end from $164.6 million, reflecting the refinancing of its listed notes and project debt. The company issued $75 million of CVC Notes 3, ASX:CVCHB, maturing in December 2028 at a margin of 4.50% over three-month BBSW, while refinancing several project debts generated a reported net cash inflow of $42.3 million.

Planning milestones carry the next phase of value creation

With the Moorebank commitment removed, CVC is directing attention to projects still moving through approval and development pathways. At Officer South, a 12-hectare adjoining parcel increased the expected developable area to about 28 hectares, while a planning permit application was lodged. Truganina’s 80-hectare holding entered the Precinct Structure Plan process, and Marsden Park North completed public exhibition ahead of an expected rezoning decision later in calendar 2026.

Other projects remain at different stages. Development applications are progressing at Lake Orr and Woolloongabba, a second-stage planning permit application is under assessment at South Morang, and a conditional sale of about 19 hectares at Donnybrook is expected to settle in FY28. CVC said the Donnybrook sale should generate funds capable of meaningfully reducing project debt, but the timing remains several years away.

Special dividend paid, but FY27 earnings remain difficult to predict

The board declared no final dividend for FY26 and said it could not forecast FY27 results or dividends because CVC’s operations are transactional. Net assets attributable to shareholders fell to $170.9 million, or $1.47 per share, from $174.3 million, or $1.49 per share, after the special dividend.

The annual report also records impairments across parts of the debt portfolio, citing planning issues, unbudgeted cost increases, construction delays and slower-than-forecast sales. CVC says most projects could become liquid over the next three to four years, but that timetable depends on rezoning, development approvals, funding conditions and eventual buyer demand.