Sandon Capital Investments (SNC) Investor presentation summary

Key financial highlights

• Shares offer a 7.1% yield (9.5% grossed up for franking) and trade at a 2.6% discount to NTA as of March 2026.

• Profits reserves and franking balance support current dividend levels for about four years.

• Monthly fully franked dividends of 0.47cps are announced through June 2026, providing regular cash flow.

• Annualised dividend is 5.64cps, with a history of fully franked dividends since inception.

• SNC's yield and discount to NTA are higher than comparable monthly income LICs.

Portfolio performance and positioning

• 1-year gross return to Feb 2026 was -3.6%, underperforming indices, but 3-year and since-inception returns are positive.

• Win/loss ratio in the last 12 months was impacted by poor share price performance in large positions.

• Portfolio remains exposed to resilient sectors, with most investments having strong balance sheets.

• Turnaround opportunities have improved financial and operational performance in some holdings.

Major portfolio holdings and updates

• QPM Energy is expanding gas-fired power generation, with a new 112MW plant due in 2027 and strong medium-term outlook.

• Fleetwood Ltd benefits from strong demand in accommodation and modular building, with a 9.6% dividend yield and a $5m buyback.

• Spectra Systems, Inc. reported doubled net profits in 1H25 and expects >US$30m cash inflows by end-2026, maintaining a 6.5-7.0% yield.

• COG Financial Group saw 8% revenue and 11% NPATA growth in 1H26, with strong positioning in SME finance and novated leasing.

• Magellan Financial Group merger with Barrenjoey validated asset value estimates, with a stabilised operation and significant cash position.

• Carbon Conscious Investments generates ACCUs with premium pricing and long-term contracts, providing stable dividend income.