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Sydney, May 1, 2006 (ABN Newswire) - Indigo Pacific Capital invests in property development and its investments are fairly widespread and diverse. It’s invested in projects from Palm Cove, north of Cairns, down to Martha Cove, one hour from Melbourne. It’s invested in residential projects, subdivisions, high-rise apartments, retail centres, commercial buildings, so it’s across many different property sectors and fairly broad geographic spread also. We think it’s important to move with the sectors and to move with the markets, and our recent investment in North Bank Plaza, the Brisbane City Council building, a commercial asset of some 26,000 square metres, is indicative of that ability to move within markets that are working at the time. The Brisbane commercial market, for instance, at the moment is the strongest it’s been in the last 15 years in Brisbane, and the strongest commercial property market in Australia at present.
Investments by Indigo Pacific are fairly different size and structure. They’ve been from a couple of million dollars to 18 million dollars at a time, and these investments can range in the project from a few months to a few years. So we’re not neatly packaged into an annual profit cycle, if you like: a large portion of our current investments are in projects that run two plus years.
We’ve had some recent changes to our board composition. We have a new Non-Executive Chairman, Selwyn Snell, and a new Non-Executive Director, Ian Gillespie. What they bring to our board is a lot of small cap and larger cap public company experience and operational experience in working in public and private companies. We think this gives our board more independence. We think this is a great thing for our strategy as we track forward.
We take our forecasts seriously at Indigo Pacific Capital. In our first year of operation we said we’d deliver a ten million dollar net profit. We did so. We didn’t talk about a dividend payment but we delivered one anyway. This year we’re talking about nine cents fully franked paid per share and a 20% growth over the next two years, and we intend to deliver that.
Indigo Pacific Capital is a low-cost company. There’s very little creep of costs in our business. Tax is virtually what we pay. Our first year of operations I think our total company expenses were less than a quarter of a million dollars: staggering, for a company that delivered ten million dollars in net profit after tax.
We believe Indigo Pacific Capital’s future is a bright future. I mean, we’re a young company – we’ve been listed for not quite two years now – but our investment strategy is working. We have divestment diversification, things are travelling well. The funds are in good projects, they are delivering good profits. Future projects are already being lined up for investment when funds re-emerge. We’re currently fully invested, so there’s no lazy capital in the business. All the funds are working on a variety of different projects. It’s a great position to be in, and we look forward to delivering results to the shareholders.