MFS lifts profit
Just a day after announcing the appointment of a new chief financial officer, MFS Limited has announced its second successive record full-year net profit to $185 million.
According to MFS, this represents a 90 per cent increase over the same period a year ago and equates to a weighted earnings per share of 53 cents compared to 43 cents a share in the previous corresponding period.
MFS’ chief executive attributed the result to the level of growth in the company’s funds under management and its success in building a tourism business that now accounts for more than 55 per cent of ongoing recurrent earnings.
The chief executive of MFS Australian Funds Management, Craig White, said the company was targeting at least $10 billion of fee-paying assets under management by June 30 next year.
He confirmed this projection despite current equity and debt market volatility saying the business continued to perform strongly and the company expected earnings growth to significantly better the market’s present expectations.
White said MFS and its funds were not exposed to the recent contraction in global liquidity due to the uncertainty in the US sub-prime lending market.
“We view the recent tightening in lending criteria and borrowing cost increases as an opportunity, not a threat,” he said.
“The fact that none of our managed funds are leveraged beyond normal traditional prudent real estate lending ratios will prove a substantial risk mitigant in the next 12 months.”
AUTHOR
Mike Taylor
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