Listed investment company, Mirrabooka Investments (MIR) reported a 7% fall in earnings for the 2008 first half profit result after its portfolio of small and mid sized companies displayed subdued returns.
Melbourne based company said the net profit attributable to members for the half-year ended 31 December 2007 was $11.6 million, 7.3% down from the previous corresponding period.
The company invests in small and medium sized companies in Australia and New Zealand.
"In contrast to recent years, the small and mid cap sectors displayed subdued returns over the six months to 31 December as the market dealt with the fall out from US sub prime credit markets crisis," chairman Terry Campbell said.
"The small and mid cap industrial sectors returns were negative, at around minus 5% over the six months to 31 December 2007 as investors became more cautious about their earnings outlook," he said.
The company advised investors to remain wary over the coming months as the impact of the shake out in credit markets in the United States and the flow-on effects on the US economy and elsewhere become clearer.
"At this point there is a significant amount of uncertainty across a number of markets," the company said.
However, the continued volatility and reduction in valuations presented an opportunity to selectively add to Mirrabooka's portfolio at attractive prices ‘having regard to the medium to long term investment focus of the company'.
Shares in MIR fell 11 cents or 4.8% to $2.15.
