Mirrabooka 1H profit down 24%
Mirrabooka Investments Limited (MIR) reported a 24% reduction in net profit for the six months to 31 December 2009 compared to the previous corresponding period. The company said its profit totaled $5.6 million, while operating profit dropped 27% to $4 million.
Mirrabooka declared an interim dividend of 3.5c per share fully franked, unchanged from the previous year.
”The general decline in dividends impacted the dividend and distribution income received by Mirrabooka for the six month period,” the company said.
Mirrabooka said its portfolio return was 30.2% over the six month period, which was ahead of the 27.7% return experienced by the combined small to mid cap sector over the period.
The company said it purchased several attractively priced issues, most notably Hastings Diversified Utilities Fund and Healthscope, while the company also added Ardent Leisure Group, CFS Retail Property Trust, Sigma Pharmaceuticals and Customers Limited to its portfolio.
“As a result of these purchases cash represented only 4% of the total portfolio at 31 December down from 13% of the portfolio at the end of the last financial year,” the company said.
“Major sales from the portfolio were ABB Grain, which was under a takeover offer, Sonic Healthcare, Computershare and, as a result of the exercise of call options, Toll Holdings and James Hardie Industries.”
Mirrabooka said its was close to fully invested at a time when the market has recovered to a point where valuation levels reflect fair value and look neither cheap nor expensive.
”The portfolio is well positioned and we will be looking to the upcoming company reporting season to verify that the economic recovery is being reflected in company earnings,” the company said.
As at 1144 AEDT, Mirrabooka shares were unchanged at $2.15.
Leave a Reply