Mirrabooka Investments, one of the investment companies associated with Goldman Sachs JBWere, produced one of the first 2008-09 results yesterday and it looks like being typical of this year’s crop.
Earnings weak and not much guidance was given for the year ahead (Source).
The hard market conditions due to the global economic downturn and credit crunch meant the value of its portfolio fell by 19.4% in 2008-/09, compared with the 26% fall in the market as measured by the All ordinaries Index.
Mirrabooka’s said its net operating profit before gains on investments was $8.38 million in the year ended June 30, up slightly from $8.28 million the previous year.
After excluding a $763,000 gain on securities sold from its portfolio and tax impacts, Mirrabooka made a net loss of $6.76 million, compared to a profit of $29.09 million in the previous year.
"This includes an ‘impairment’ revaluation charge of $15.5 million (after tax). Excluding this, the net profit would have been $8.7 million," directors said.
Revenue from operating activities (excluding realised capital gains on investments) was $9.7 million, 9.4% down from the previous corresponding period.
Mirrabooka said it had held a relatively high level of cash throughout 2008/09, with cash representing 13.1% of its portfolio by year end.
"Mirrabooka believes current prices adequately reflect the economic recovery so we are not actively in the market on a day to day basis," it said.
"Going forward, remaining cash will allow Mirrabooka to participate in attractively priced new issues which have been recently a feature of the market or in further investments in stocks that we feel match our investment criteria."
Mirrabooka noted also a decline in dividends paid as companies sought to strengthen their balance sheets and adjusted to subdued business conditions.
"This impacted the overall income of Mirrabooka, although this decline was able to be offset by increased income from call writing option activities as market volatility remained high," it said.
Revenue from dividends and distributions declined to $7.68 million, from $9.47 million.
Mirrabooka declared a final dividend of 6.5 cents a share, in line with the previous corresponding period.
The company said net asset backing per share before the provision for deferred tax on the unrealised gains in the Company’s investment portfolio as at 30 June 2009 was $1.50 (before allowing for the final dividend), down from $1.98 at the end of the previous corresponding period (also before allowing for the final dividend).
Mirrabooka said it sold or accepted takeovers for companies with just over $36 million and spent $35.5 million buying shares, mostly in market issues during the huge capital raising surge in the year to June 30.
The company’s shares rose 2 cents to $1.60
