Listed investment company, Mirrabooka Investments (MIR) has boosted its dividend, and will make another special payment to shareholders, after lifting annual profit by 24% in the year to June 30.
The company’s 2015-16 results, released yesterday, are the first from the investment companies linked by management and board membership to the industry giant, Australian Foundation Investment Company.
Thanks to stakes in high performers, Treasury Wine Estates and Mayne Pharma, Mirrabooka has a stellar year. Mirrabooka will pay a final dividend of 6.5 cents a share (unchanged from 2014-15), fully franked, plus a special dividend of 5 cents a share, down from 7 cents a share a year ago.
Net profit in the year to June rose to $8.8 million for the year ended June 30 — from $7.1 million a year earlier. Despite the solid performance, directors warned that they see more volatility in financial markets.
“Heightened volatility is likely to be widespread in markets for the foreseeable future given economic and political uncertainties,” Mirrabooka directors said yesterday.
Higher dividend income and a rise in the contribution from the company’s trading portfolio drove earnings higher.
Mirrabooka said Treasury Wine Estates, Netcomm, iProperty, Vocus Communications and Mayne Pharma made significant contributions to the performance of its portfolio.
New stocks added to the portfolio during the year included Mainfreight, OzForex Group, Navitas, ASG Group, Ardent Leisure Group, and Australian Agricultural Company.
Mirrabooka said it sold out of iProperty Group, Broadspectrum and Veda Group, which were all taken over, and Blackmores, James Hardie Industries and Tassal Group, among others.
Mirrabooka’s total portfolio return, including dividends and franking credits, was 15.4%, lower than the return of 17.2% from the benchmark combined small and mid-cap market index.
Mirrabooka said the return from its portfolio was lower than the benchmark because it was not a large investor in the small to mid-cap resources sector which experienced a strong rebound near the end of the financial year.
