Blue Sky’s NPAT is steady on last year’s result after one-off accounting factors relating to the listing of the company in January 2012 are taken into account.
Speaking to InvestorDaily, Blue Sky managing director Mark Sowerby said the biggest accounting gain on the company’s balance sheet came from the equity investment in Blue Sky Water Partners, which added $1.74 million to the 2011/2012 result.
“We owned 37.5 per cent [of Blue Sky Water Partners] before listing, and then we ended up owning 100 per cent,” he said.
Because between 20 and 50 per cent of the company was changing hands, it had to be revalued, said Mr Sowerby – and the new valuation was “a lot more” than the company had on the books for its existing 37.5 per cent.
The company also increased its operating revenue by 48 per cent to $13.2 million (from $8.9 million in the previous corresponding period).
“The quality of earnings is improving all the time, and cash conversions are going up,” Mr Sowerby said. Much of the fees that Blue Sky earns is taken as equity, he added.
The company also increased its assets under management from $200 million to $350 million in the year to 30 June 2013.
Blue Sky manages four alternative asset classes: private equity, private real estate, hedge funds and ‘real assets’, such as water and water infrastructure – timber would also be included in this “bucket”, he added.
“It’s probably the sexiest bucket around at the moment because people are looking for genuine tangible assets that generate cashflow and will protect them from future volatility,” Mr Sowerby said.
