K2 ASSET MANAGEMENT HOLDINGS LTD (KAM)



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General Information
Company Name: K2 Asset Management Holdings Limited
Stock Code: KAM
Website: www.k2am.com.au
GICS Sub-Industry: Other Diversified Financial Services
Market Cap ($M): 131
Equiv. Shares (M): 233

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.560 $ 0.000 $ 0.000 $ 0.000 $ 0.560 0 0%

Company Overview

Business Description:
K2 Asset Management Holdings Limited (KAM) is an Australian based fund manager specialising in absolute return funds. K2 manages three investment funds across Australia and New Zealand, Asia Pacific and International markets.

Strategy Analysis:
KAM is focused on growing their funds under management (FUM). In order to grow FUM the company is committed to enhancing their brand awareness and marketing techniques. KAM has recently embarked on an advertising campaign focused on industry publications and the broader community. K2 Asset Management Holdings reported NPAT of $4.65m for the half-year ended 31 December 2012. Revenue from ordinary activities were $12.32m, up 70.65% from last year. Basic and Diluted EPS were 1.99 cents compared to 0.9 cents last year. The net operating cash outflow was $121,754 compared to an outflow of $1.4m in the pcp. The interim dividend declared was 2 cents, compared with nil cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2014  F 11.1 4.7 -4.1 11.8 4.5 8.0 --
2013  F 11.6 4.9 -- 11.4 4.8 8.6 --
2012  A -1.7 -0.7 -110.4 0.0 0.0 0.0 --
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
IOOF (IFL) $1,978 M -0.1406 0.1269 0.1281 20.6295 18.3068 16.2286 0.0434 0.0485 0.0539
K2 Asset Management Holdings (KAM) $131 M -- -- -0.0406 -- 11.3590 11.8393 0.0000 0.0857 0.0804
Macquarie Group (MQG) $14,989 M 0.2165 0.4295 0.1149 17.9277 12.5409 11.2482 0.0453 0.0564 0.0639
Perpetual (PPT) $1,815 M 0.1615 0.1182 0.1812 25.7121 22.9951 19.4670 0.0208 0.0273 0.0399
Platinum Asset Mgmt (PTM) $3,008 M -0.1447 0.0036 0.1749 23.4562 23.3732 19.8945 0.0398 0.0393 0.0480

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
KAM 0.89 12.9 12.0 0.07 9.57
Market 0.83 14.4 1.22 1.88 1.72
Sector 1.22 19.7 1.15 1.32 5.12

Directors
Name Position Start Date
Mr Campbell Neal Chief Executive Officer,Executive Chairman,Managing Director 27 March 2007
Mr Mark S Newman Chief Investment Officer,Executive Director 27 March 2007
Mr Robert Hand Executive Director 27 March 2007
Ms Hollie Wight Executive Director,Chief Financial Officer 27 March 2007

Management
Name Position
Ruth Marian McClelland Company Secretary & Legal Counsel

Substantial Shareholders
Holding Name
-- (--%) Not Disclosed in Annual Report

Calendar of Events
Date Event
05 February 2014 Report (Interim)
07 August 2013 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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