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.
