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LONDON - Magellan Capital Holdings PLC (LSE:PH80) reported a net income of £602.9 million for the 2024 financial year, largely driven by a £659.9 million gain on its acquisition of Danish Ship Finance (DSF), according to the company’s annual report released Monday.
The London-listed investment firm said the substantial gain resulted from a post-acquisition purchase price allocation review conducted by KPMG, which determined the Class B equity at DSF should be valued at fair market value in accordance with IFRS standards. While the book value of the Class B equity stood at £925 million as of December 31, 2024, the market value was determined to be £565 million.
Magellan Capital reported an interest coverage ratio of 4.7x and maintained £78.1 million in liquidity at the parent company level. The company’s net debt position was £262.7 million, with DSF contributing £25.9 million in retained earnings.
In its statement, the company indicated it has been working with DSF’s management team in Denmark on integration efforts, focusing on portfolio optimization, funding diversification, and geographic expansion of the client base.
Magellan described its approach as "disciplined and conservative," maintaining substantial liquidity to preserve financial flexibility while positioning itself for future opportunities.
The annual report marks the company’s first consolidated financial statement since completing the DSF acquisition, which it characterized as a milestone transaction reflecting its strategic focus on value enhancement.
The full annual report for the 2024 fiscal year is now available on the company’s website, according to the press release statement.
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