Our Investments

As the owner of Body Corporate Services, the largest strata unit manager in Australia, Prudential was attractive to London City. In 2003 London City acquired a 20% shareholding. It was keen to increase this shareholding substantially. However, the key overseas shareholder, rather than selling, made a takeover bid for Prudential, successfully acquiring the company after a number of bid increases. Although this long term investment became short term, the gain to London City shareholders was significant.

Asked to support a rights issue in 2004, London City was forced to take Board representation in late 2004, funding adverse cash flow at the time. Following a further rights issue in 2005 and the appointment of new senior management, CCI performance improved significantly, assisted also by the company’s strong market positioning and the resources uplift. Moving from a market capitalisation of around $8 million in 2003, CCI was ultimately acquired by a leading French international group in June 2007 for close to $80 million.

Other Investments

In the late 1990s this marine company experienced major losses and its share price fell from $5.00 to 35 cents and new management installed. London City recognised the company as a long term low cost “buy”. Within six months two transport groups fought a takeover battle for Holyman, the final price paid was $1.08 per share. London City assisted the Holyman defence.

Formed in 1996 Fiducian has been a small, but active, participant in the investment / financial services market. The company had been on London City’s 'watch list’ for over three years. Led successfully by Mr I Singh and his team, Fiducian has been increasing funds under management consistently. Many of Fiducian's funds regularly feature in the top end of the performance tables.

During 2008 London City acquired an 8.25% equity interest in this Adelaide group from a placement of new shares and is now Penrice’s largest single shareholder. Penrice is Australia’s only manufacturer of soda ash and bicarbonate of soda, products which are important in the manufacture of glass and food items. Penrice also operates limestone quarry activities north of Adelaide. For 2008 the company reported increased revenues of $135 million and a net profit after tax of $7.2 million. Over the last two years Penrice has installed a new senior management team and the company is in the second year of a three year enhancement programme.

An important part of London City’s strategy is not to risk capital losses by placing monies on deposit with organisations offering tempting high interest rates. London City’s cash funds are held by leading Australian trading banks at safe, but realistic, interest rates.