Keybridge investors face wait for returns
Financial services group Keybridge Capital has told the Australian Securities Exchange (ASX) today that market conditions mean, in capital management terms, it may be two to three years before it begins returning capital to shareholders.
The announcement on capital return arrangements came as the company announced a net profit after tax for the six months to December 31 of just $1.3 million and said that there would be no interim dividend.
It said conditions in most markets in which the company had invested remained challenging and that a number of cash flows and investments, both income payments and principal reductions, were not received as scheduled in the December quarter.
Keybridge said until global financing conditions improved, it expected similar delays in cash flows to continue to occur.
The ASX announcement said the board had resolved to manage the company's capital to reduce corporate debt and then return capital to shareholders.
"We anticipate that returns of capital to shareholders are most likely to begin in two to three years time and be spread over the subsequent three to four years," it said.
AUTHOR
Mike Taylor
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