Alex Waislitz’s Thorney lifts asset backing

Alex Waislitz’s Thorney Opportunities has posted a 77.5 per cent increase in annual net profit to $16.6m.

Billionaire Melbourne investor Alex Waislitz. Picture David Geraghty

Thorney Opportunities (TOP) has narrowed the gap between its share price and net tangible assets as it posted a 77.5 per cent increase in annual net profit to $16.6 million.

The company’s NTA per share at June 30 was 60.8c, up 16.7 per cent over the 12-month period, almost in line with the 60c share price. Given further strong rises in the share prices of some of Thorney’s core portfolio companies during July, the NTA is expected to be higher when an updated number is released to the ASX this week.

The company, founded by billionaire Alex Waislitz, declared a fully franked final dividend of 0.6c per share, up 20 per cent.

TOP’s star-studded backers include Fairfax Media chairman Ron Walker, former Macquarie Group chief executive Allan Moss and retail king and shopping ­centre owner Marc Besen.

Its directors include Ron Brierley’s long-time lieutenant Gary Weiss and Ellerston Capital chairman Ashok Jacob.

“Along with the board of TOP, I am very pleased with the performance of TOP during the past twelve months,” Mr Waislitz said in his chairman’s update. “The results were achieved in an equity markets and political environment which continues to challenge the stock-picking ability and management skills of all financial market fund managers.”

TOP has stakes in ­Fairfax Media, auto finance group Money3, smash repairer AMA Group, mining ­services group Austin Engineering and NBN contractor Service Stream. More than 30 per cent of its funds remain in cash.

TOP also has a stake in financial services group Diversa, which proposes to merge with rival OneVue to create a business with combined funds under trusteeship, management and administration of about $10.8bn and more than 75 clients.

TOP has increased its Diversa holding to 19 per cent, from the 13 per cent it secured last year during a share placement.

Mr Waislitz made no mention of two of TOP’s underperforming investments, listed poppy producer TPI Enterprises and bio­diesel company Australian Re­newable Fuels.

Earlier this year ARF went into voluntary administration as a result of the slumping global oil price and changes in the federal government’s taxation policy for domestically produced biodiesel. TOP held a 26.9 per cent stake in the biodiesel company.

TPI is one of three licensed poppy processors in Australia and the only one Australian-owned.

Its biggest shareholder is BRW Rich List veteran Robert Millner’s listed investment company Washington H. Soul Pattinson. But its shares and financial performance has disappointed since listing in 2014.