TCL -0.72%: The toll road operator reported FY23 results that were a touch light on. Proportional EBITDA of $2.448m was ~2% below consensus while the dividend of 58cps had already been announced. For FY24, they expect distributions of 62cps (v 62.5cps consensus), but they mentioned this was likely to include WestConnex cash previously held during construction (which is 3-4cps), which implies a softer underlying result, although worth bearing in mind, they like to upgrade distribution guidance through the year and this could give some ammunition to do that. While debt is high, it’s 96% hedged as you’d expect while inflation-linked tolls should also help with top-line growth. TCL also announced a new CEO, the impressive Michelle Jablko to take the reins from retiring CEO Scott Charlton.
MM remains neutral TCL, having sold at higher levels.
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