MFS posts $6 million loss
Acquisitions, including the seasonal Mount Hotham and Falls Creek Ski Lift businesses, have not saved boutique fund manager MFS from a net loss after tax of more than $6 million, but the company is maintaining the result was much better than anticipated.
MFS managing director Phil Adams said the $6.339 million loss had originally been forecast to reach $7.75 million, 18 per cent worse than the actual result.
Adams noted that the company’s performance reflected its operations only between its listing on the Australian Stock Exchange in January 2005 and the end of the 2004/05 financial year.
He said the ski lift businesses, although highly profitable during the ski season from mid June to mid October, tended to operate at a loss through the rest of the year which included the period in which the results occurred.
“Apart from the organic growth achieved through the inflow of retail and superannuation investments, further growth will be achieved by further acquisitions, Adams said. “This is consistent with the investment company approach taken by MFS in recent times.”
The company has recently restructured its business after it took a controlling interest in listed resort and holiday group Breakfree and then relocated all key management staff to the Gold Coast.
Several staff were retrenched as a result of the restructure, and general manager Sean Preece opted to leave the company and stay in Sydney in preference to moving his family to Queensland.
Steve Kyling from Challenger was recruited to lead the company’s Premium Income mortgage fund.
AUTHOR
Zoe Fielding
Recommended for you
In this episode of Relative Return, host Laura Dew speaks with Daniel Bower, chief product officer at FinClear, and Bill Keogh, chief executive of Transact1 (a FinClear subsidiary) to discuss cash as an asset class.
In this episode of Relative Return, host Maja Garaca Djurdjevic is joined by shadow treasurer Angus Taylor to discuss the current state of the financial advice sector, the economy, the housing affordability crisis and more.
In this episode of Relative Return, host Laura Dew speaks with Andrew Mitchell, director and senior portfolio manager at Ophir Asset Management, about why he loves working in fund management and the lessons he’s learnt in a decade of running a firm.
In this episode of Relative Return, host Laura Dew speaks with Blackwattle Investment Partners managing director and chief investment officer, Michael Skinner, about setting up an asset manager and what he looks for in an investment team.
