How Cadence Capital Limited just tripled its net profit to $37 million

This under-the-radar fund manager boasts some attractive fundamentals.

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International equities manager Cadence Capital Limited (ASX: CDM) this afternoon released an impressive profit report for the full year ending June 30, 2017. Below is a summary of the results, with comparisons to the prior financial year.

  • Net profit after tax of $37 million, up 220%
  • Profit before tax of $47 million, up 200%
  • Total income of $66.6 million
  • Basic earnings per share of 13.5 cents
  • Flagship Cadence Capital Fund returned 2%, versus 13.1% for the benchmark
  • 4 cents per share final dividend, full year dividends totaled 8 cents per share
  • Net tangible asset backing after tax of $1.24, as at June 30, 2017

This was a good year for the fund manager that invests primarily in leading Australian, global, and U.S. equities such as Google-owner Alphabet Inc., Softbank, Janus Henderson Group (ASX: JHG) and Macquarie Group Ltd (ASX: MQG).

Its ASX-listed stock closed at $1.235 on June 30, which suggests it trades in line with its net tangible asset backing per share. The  trailing dividend yield is 6.3% plus the tax effective benefits of franking credits.

Motley Fool contributor Tom Richardson owns shares of Macquarie Group Limited and Google. You can find Tom on Twitter @tommyr345 The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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