OUR INVESTMENT PHILOSOPHY
Our focus is to preserve and accumulate capital on an inter-generational basis. We have been investing for over 150 years, and intend to be around for another 160, at least. Our goal is to generate sustainable and reliable dividends that can provide income for families. As such, Gowings is for investors who share a similar investment philosophy and is suitable for other families who wish to invest alongside the Gowing family.
Gowings does not target any specific asset class or time horizon and provides investors with exposure to a wide range of asset classes, which adjust as opportunity and risk are managed. Some of these are not normally available to retail investors. The Company does not limit itself to ASX-listed equities, to any single national boundary or currency, or any particular industry type. It will, at times, invest in unlisted securities, where these provide particular opportunities.
Risk is managed through natural hedges, diversity, and conservative gearing and Gowings does not attempt to reduce risk and preserve capital by investing only in so-called “low-risk” assets but rather seeks to offset risk with a balanced and diverse portfolio of different asset classes.
As an inter-generational investment vehicle, Gowings does not focus on the day-to-day ASX share price, but rather on preserving and increasing the long-term value of underlying assets, which are the ultimate source of income and growth.
At Gowings the board of directors and management are shareholders, giving rise to our commitment of ‘Investing together for a secure future’.
GOWINGS AT A GLANCE
31 July 2021 $’000 |
31 July 2020 $’000 |
|
Surf Hardware International (at cost) | 16,000 | 16,000 |
Boundary Bend Limited | 14,834 | 12,216 |
Carlton Investments | 6,484 | 4,650 |
DiCE Molecules | 2,304 | 2,304 |
Murray Darling Food Company | 2,157 | 2,157 |
Hexima | 1,822 | 949 |
Hydration Pharmaceuticals | 1,331 | 1,331 |
NSX Limited | 1,250 | 900 |
Three Valley Meats | 950 | - |
Power Pollen Accelerated Ag Technologies | 885 | 885 |
EFTsure | 681 | 602 |
SYMBYX | 600 | - |
Blackfynn | 403 | 403 |
Other Investments - Australia | 8,532 | 8,269 |
Other Investments - International | 1,704 | - |
Total | 59,937 | 50,666 |
Five V Capital | 3,740 | 1,620 |
OurCrowd Australia | 1,424 | 1,248 |
Our Innovation Fund I | 2,544 | 1,788 |
Our Innovation Fund II | 175 | - |
Other Private Equity Funds | 120 | 95 |
Total | 8,003 | 4,751 |
Sub-regional shopping centres | 198,069 | 198,131 |
Borrowings | (94,309) | (80,175) |
Total | 103,760 | 117,956 |
Sawtell Commons - residential subdivision | 12,480 | 10,578 |
Solitary 30 - Coffs Harbour development land | 3,864 | 3,734 |
Other Properties | 8,132 | 13,250 |
Borrowings | (1,101) | (1,350) |
Total | 23,375 | 26,212 |
Cash (AUD) | 21,919 | 15,329 |
Cash (USD) | 7,087 | - |
Tax liabilities | (14,021) | (12,017) |
Surf Hardware International consolidation impact | (1,310) | (609) |
Other assets and liabilities | (103) | (6,757) |
Total | 13,572 | (4,054) |
Net assets before tax on unrealised gains on equities and investment properties | 208,647 | 195,531 |
Provision for tax on unrealised gains on equities and investment properties | (13,497) | (11,456) |
Net assets after tax on unrealised gains on equities and investment properties | 195,150 | 184,075 |
STRATEGIC EQUITY INVESTMENTS
Surf Hardware International
https://gowings.com/investment-spotlight-2/#Boundary Bend Limited
https://gowings.com/investment-spotlight-2/#Carlton Investments
https://gowings.com/investment-spotlight-2/#3609DiCE Molecules
https://gowings.com/investment-spotlight-2/#4359Murray Darling Food Company
https://gowings.com/investment-spotlight-2/#4358NSX Limited
https://gowings.com/investment-spotlight-2/#4358Hexima
https://gowings.com/investment-spotlight-2/#4364Blackfynn
https://gowings.com/investment-spotlight-2/#4364EFTsure
https://gowings.com/investment-spotlight-2/#4364Power Pollen Accelerated Ag Technologies
https://gowings.com/investment-spotlight-2/#4364PRIVATE EQUITY FUNDS
Five V Capital
OurCrowd Australia
Our Innovation Fund
PROPERTY DEVELOPMENTS
Sawtell Commons
Solitary 30
INVESTMENT SPOTLIGHT
LAVO™ Hydrogen Technology Limited
LAVO™ is changing the way people live with energy. An Australian headquartered hydrogen technology and lifestyle company, LAVO™ designs and manufactures renewable hydrogen energy storage solutions for residential and commercial use. LAVO™ will challenge convention, spark a global conversation and enable a meaningful change in attitudes and behaviours around sustainability, the environment and responsible consumerism. Founded ...
LAVO™ Hydrogen Technology Limited
INVESTMENT SPOTLIGHT
SYMBYX Biome
SYMBYX Pty Ltd is an Australian medical technology company developing Photobiomodulation (PBM) or cold laser therapies to manage previously intractable, chronic diseases and inflammatory conditions. The primary treatment route is via the gut microbiome, leveraging the increasingly well-researched linkages between the microbiome and various body systems, including the nervous system, heart, and kidneys. Parkinson’s and Fibromyalgia are current p...
SYMBYX Biome
INVESTMENT SPOTLIGHT
Best & Less Group
Best & Less Group, made up of the brands Best & Less in Australia and Postie in New Zealand, is a retailer specialising in baby and kids’ apparel. The company generates 86% of revenue from its proprietary brands, all designed in-house. Its clothing is then distributed for sale across 246 physical stores and online. The group recorded unaudited sales revenue of $663 million for FY21. The group listed on the ASX on July 26th af...
Best & Less Group
INVESTMENT SPOTLIGHT
CannaPacific
CannaPacific is an Australian biotechnology company with a focus on developing novel registered cannabinoid-based medicines for patients with unmet medical needs. CannaPacific is building a global therapeutic offering with an initial focus on palliative care and post-traumatic stress disorder. Their 3 core business hubs are Pharma Development (rebranded to 3eD Pharma); Cultivation and Clinical engagement programs. During FY 21 their Pharma stra...
CannaPacific
INVESTMENT SPOTLIGHT
National Stock Exchange of Australia Limited
NSX owns and operates the National Stock Exchange of Australia; the second largest listings exchange in Australia. NSX is building an alternative exchange, creating a deeper, more liquid and a lower cost of raising capital. Gowings believes NSX has the potential to develop into a Tier 1 listings exchange, providing strong growth by initially targeting lower market capitalisation companies and providing exchange services at lower cost. In May 2021...
National Stock Exchange of Australia Limited
INVESTMENT SPOTLIGHT
Cobram Estate Olives
Cobram Estate Olives is Australia's leading producer of premium extra virgin olive oil and Australia’s largest olive farmer. Boundary Bend produces Australia’s two top selling extra virgin olive oil brands, Cobram Estate and Red Island, and owns 2.4 million producing trees on over 6,575 hectares of pristine Australian farmland located in the Murray Valley region of northwest Victoria. Additionally, Boundary Bend operates a bottling, storage a...
Cobram Estate Olives
INVESTMENT SPOTLIGHT
Five V Capital
Five V Capital was set up and is managed by Adrian MacKenzie and Srdjan Dangubic, experienced Australian private equity and venture capital managers with whom Gowings has enjoyed a long relationship. Gowings have committed $1 million to Five V’s Fund II which has invested in leading businesses across a range of sectors including healthcare, retail, media, consumer, technology, and financial services. Including brands such as Madman Entertainmen...
Five V Capital
INVESTMENT SPOTLIGHT
Our Innovation Fund
Our Innovation Fund is an early-stage venture capital fund that invests in Australian-based, early-stage, innovative technology businesses with the potential for high growth and attractive returns. The Fund is run by a team with decades of experience investing in and building technology businesses. The fund capitalises on the Australian Government's National Innovation and Science Agenda, seeking to stimulate the Australian innovation ecosystem w...
Our Innovation Fund
INVESTMENT SPOTLIGHT
Carlton Investments
Carlton Investments Limited is a listed investment company, incorporated in 1928 and traded on the ASX. Carlton Investments’ strategy is to invest in established, well managed Australian listed entities that are expected to provide attractive levels of franked dividends and long-term capital growth. Investments are held for the long term and are generally only disposed of through takeover, mergers or other exceptional circumstances that may ari...
Carlton Investments
INVESTMENT SPOTLIGHT
DiCE Molecules
DiCE Molecules (DiCE) is a privately held US biotechnology company running a technology platform that began at Stanford University and has the potential to revolutionize small molecule drug discovery. Their business model includes the generation of milestone payments and royalty revenue through drug discovery collaborations, alongside the monetization of its own drug development assets.
DiCE has been making great progress despite COVI...
DiCE Molecules
INVESTMENT SPOTLIGHT
PowerPollen Accelerated Ag Technologies
PowerPollen is an early-stage agricultural technology company based in Iowa, USA, that is working on advanced yield enhancement technology that enables higher yields in seed and grain production. PowerPollen has created a paradigm shift in agriculture by revolutionizing how plants reproduce, providing unprecedented control of pollination that simplifies corn seed production while potentially enabling hybrid production and higher profits in curren...
PowerPollen Accelerated Ag Technologies
INVESTMENT SPOTLIGHT
Pacific Coast Shopping Centres
Our centres are well placed and continue to capitalise from the rapid economic growth and development currently being experienced in the NSW Mid North Coast region. Substantial ongoing government investment including the approved $1.8 billion dollar Coffs Harbour Pacific Highway Bypass Project due to commence later in 2021, combined with a large population surge due to increased work flexibility and other infrastructure investment including healt...
Pacific Coast Shopping Centres
INVESTMENT SPOTLIGHT
Coffs Central Shopping Centre
During the period the leasing team were able to successfully renew a major anchor tenant and secure high-quality new retailers in the more challenging air-bridge space at rental levels above valuation including:
Hearing Australia, Shape 20, Fone Works
The leasing pipeline and enquiry levels remains relatively strong with 3 new lease deals and 7 renewals currently being negotiated. The team is taking a highly selective ap...
Coffs Central Shopping Centre
INVESTMENT SPOTLIGHT
Port Central Shopping Centre
Port Central continues to trade strongly and vacancies are at a minimum. During the period we secured BCU in a prominent street-facing site and we are negotiating lease deals with 3 new tenants. The renewals pipeline is strong with a major fashion offer renewing during the period and 10 renewals relating to major retail groups close to finalisation.
The planned capital upgrade & reconfiguration of the upstairs food court in...
Port Central Shopping Centre
INVESTMENT SPOTLIGHT
Kempsey Central Shopping Centre
We are very pleased to report that the Country Universities Centre Macleay Valley (which was backed and supported by the Federal & NSW Government, CUC Central, Kempsey Shire Council, and Gowings Bros Ltd was opened officially at Kempsey Central in April 2021 by the Mayor and local Federal member. CUC is a major strategic tenancy for the centre and has been hugely successful since its launch with 114 registered students, far exceeding the init...
Kempsey Central Shopping Centre
INVESTMENT SPOTLIGHT
Sawtell Commons
Completion of the Stage 2 works sees 20 of the 220 Sawtell Commons residential lots constructed and registered for sale or development. Sale prices for the stage 3 release of 56 lots are being reviewed but to date, pre-sale interest has been strong with 11 holding deposits received at an average of $325,000 per lot. Stage 3 subdivision works have commenced with Registration for stage 3 expected around the end of March 2022....
Sawtell Commons
INVESTMENT SPOTLIGHT
Solitary 30
The Jetty development site located at 357 Harbour Drive paves the way for an exciting new mixed-use development for Gowings. The site has now been demolished and some of the historic and original timber elements of the Forestry Building have been re-purposed at the new Gowings Head Office located on level 3 of the Gowings Building on Harbour Drive in Coffs Harbour. Various Architects have presented several concepts for the site and are we contin...