Kerry Stokes’ private company Australian Capital Equity has reported a big jump in annual profit while also disclosing the value of his expansive art collection and other assets.
Kerry Stokes’ private company Australian Capital Equity has reported a big jump in annual profit while also disclosing the value of his expansive art collection and other assets.
ACE posted a net profit of $492 million for the year to June 2024, up from $137 million in the prior year, according to accounts lodged with ASIC.
The private company, which counts Kerry Stokes as chairman, his son Ryan Stokes as chief executive and his wife Christine Simpson Stokes as a director, has total assets of $2.6 billion.
This includes its controlling stake in ASX company Seven Group Holdings, through which it controls Seven West Media.
It also has an expansive $500 million ‘property’ portfolio, including pastoral stations and Mr Stokes’ famed art collection, which decorates the company’s Kings Park Rd offices.
Its ‘collection assets’ were valued at $213 million, after spending $7.4 million during the financial year buying new additions for the art collection.
The company’s assets include loans to directors of $84 million.
The bottom-line profit primarily reflected the impact of balance sheet adjustments rather than a change in trading performance.
ACE’s income statement disclosed revenue of $48 million from unspecified services, sales, interest and rents, up from $41 million in the prior year,
Its cash flow statement provided further insight, with receipts from customers totalling $31 million and dividend income totalling $65 million.
With 111 staff, the company had administration costs of $53 million.
This included $11.4 million paid to key management personnel.
The directors’ report, signed off by directors Brian O’Donnell and Robin Waters, had minimal commentary.
It noted that the increase in profit was “largely due to the gain on dilution of the group’s interest in associates”.
The company’s largest asset is a 34 per cent stake in ASX company Seven Group Holdings, which is listed in the accounts with a conservative “equity-accounted carrying value” of $1.47 billion.
If this stake was valued based on the share price at June 30, it would be much higher at $5.19 billion.
ACE also has a 36 per cent stake in salt and potash developer BCI Minerals, valued in the accounts at $247 million after a $166 million provision for impairment.
The total value of its investment in associates, primarily Seven Group and BCI, was little changed at $1.75 billion.
This flowed through to the income statement in three ways.
ACE’s share of equity-accounted profits fell to $162 million (from $228 million previously) while the “gain on dilution of interest in associates” was $468 million (from zero).
These gains were offset by a $120 million impairment, most likely relating to its stake in BCI.
The group’s bottom-line net profit was helped by an $80 million income tax credit, after paying a modest $1.2 million in tax the prior year.
