MacarthurCook reports 132 per cent loss
Funds management firm MacarthurCook Limited has ended the 2008 financial year with a net profit after tax loss of $1,023 million, a 132 per cent decrease from its profit of $3,189 million for the same period last year.
According to a statement made to the Australian Securities Exchange by MacarthurCook, the drop in profits is a result of an impairment charge relating to the group’s investments holdings.
The directors stated that they “do not consider this to be an ordinary expense of the business and believe the decrease in value of investments is more due to the credit crisis than a deterioration in underlying property values”.
The group is trying to differentiate itself from other Australian property fund managers by looking to offshore markets for growth, and has sought to develop new funds and strengthen its platform both in Australia and internationally.
“In the current market conditions raising new equity for listed funds will continue to be difficult. As a result we are currently working on developing a range of unlisted real estate funds focused on Asian markets for institutional investors in the United States and Europe,” the group said.
On a positive note, the group has maintained its funds under management (FUM) at $1,449 million in line with last years $1,453 million.
It has been a big year for the group with the MacarthurCook entering into a strategic alliance with IOOF Holdings in order to broaden their distribution in the Australian retail market, which has assisted the company in reducing debt from $10.2 million as at December 31, 2007, to $6.3 million as at June 30, 2008, with the debt to equity ratio reducing from 47 per cent to 29 per cent.
The group also acquired a 33 per cent stake in New Zealand-based property funds management group Kinloch Funds Management.
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