IMF full-year result remains in question
IMF (Australia) Limited (IMF) expects to announce a first half gross profit of about $11 million with an after tax profit of about $8 million. As announced in August, the company said its full year forecast was based upon four cases coming to a successful conclusion during the 2010 financial year and if this is the case expects to achieve the forecast $20 million - $24 million in after tax profits for FY10.
In regards to the four cases, IMF said it had received in excess of $14.5 million from the Sons of Gwalia matter during the first half and expects o receive further funds in this matter during the current financial year, while the court is likely to hand down its judgment on the Kingstream trial in the near future.
Meanwhile, the company said the trial in the National Potato litigation is due to recommence today and is of uncertain duration, while the trial in the AWB litigation was adjourned from the first half into the second half of the financial year.
IMF said the first half results referred above have therefore been achieved with only one of the four matters being successfully resolved in the first half.
The board reiterated its August advice that this forecast may vary significantly as the results from these cases become known.
The company said that if it discloses a profit after tax of at least $6 million it would announce an interim fully franked dividend of 5c per share.
As at 1024 AEDT, IMF shares were up 0.5c to $1.645.
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