02/11/2021 - 15:47

CFC lifts profit as court ruling appealed

02/11/2021 - 15:47

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Family-owned CFC Group has reported a solid increase in profit and dividends as executive chairman Philip Cardaci and his brother’s widow Mae Cardaci continue their legal fight.

CFC lifts profit as court ruling appealed
CFC Group owns trucking and logistics operator Centurion. Photo: Attila Csaszar

Family-owned CFC Group has reported a solid increase in profit and dividends as executive chairman Philip Cardaci and his brother’s widow Mae Cardaci continue their legal fight.

CFC Group is one of Western Australia’s largest private companies, with revenue from its multiple businesses, including trucking and logistics operator Centurion, increasing last financial year to $670 million.

The group has a complex corporate structure but the best guide to its performance comes from parent company Contura Mining Pty Ltd, which has lodged its annual accounts with ASIC.

Contura has reported a net profit of $10.7 million for the year to June 2021, up from $8.6 million in the prior year.

It also disclosed that the group’s consolidated revenue – comprising Contura and the entities it controls – rose to $670 million.

As well as Centurion, those entities include equipment supplier CEA and contractor Cape.

The group’s operations also encompass property developer and investor Birchmead Property Group.

Philip Cardaci, who is the group’s sole director, did not provide any commentary on the group’s performance though Business News understands Centurion continues to be the main profit generator.

Contura’s annual return to ASIC states that the group has gross assets of $471 million.

Within that total, Contura Pty Ltd disclosed retained profits of $49 million.

However that figure provides just a small insight into the group’s fortunes, as it has paid large dividends over the years.

It declared total dividends of $17 million in FY21, up from $10 million and $12 million in the two prior years.

The dividends are paid to Contura’s parent company, Leone Family Holdings, which is jointly owned by Philip Cardaci (with 750,003 shares) and Mae Cardaci (250,001 shares).

Mrs Cardaci inherited the shares after her husband, former CFC chief executive Marc Cardaci passed away in 2015.

Since then, she and Philip have become embroiled in a bitter legal fight over her inheritance.

The Supreme Court ruled last month that Mrs Cardaci should be appointed executor of Marc’s estate and the trustee of two trusts while Philip will remain the guardian of a discretionary trust, through which Marc held his minority interest in CFC.

Philip Cardaci has lodged notice of his intention to appeal against the ruling.

The ruling did not affect the management or control of CFC but may have created complications in future, including over the distribution of profits.

Leone reported an increase in net profit to $13.6 million for the year to June 2021.

While Mrs Cardaci owns one quarter of Leone, the company has no history of paying dividends and Business News understands it has no intention of changing that policy.

Instead, it typically reinvests in the operating businesses.

For instance, last year Leone bought 98.7 per cent of the shares in Metquip, which is a national supplier of scrap metal and recycling equipment.

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