Babcock & Brown beats expectations

Investment and advisory firm Babcock and Brown (B&B) surpassed its own expectations today by posting an operating profit 10.4 per cent above that forecast in its pre-listing prospectus back in September 2004.

The performance, which was a 33 per cent jump on 2003, saw the firm report an operating profit before tax, restructuring costs and goodwill amortisation for the 2004 calendar year of $157 million this morning.

The investment and funds management division was up 37 per cent on the previous 12 month period, while B&B’s real estate business exceeded the prospectus forecast by 10 per cent to put it up 43 per cent for the year.

B&B executive chairman Jim Babcock was optimistic the group, which publicly listed last October, would grow a further 10 per cent this year.

“In the first half of the year, growth will be underpinned by a number of initiatives including the IPO (initial public offering) of Everest Babcock & Brown Alternative Investments, and the establishment of the Babcock & Brown Japan Property Trust,” Babcock said.

The group is also expecting to boost performance with its proposed $1 billion joint venture with General Property Trust and the $1 billion public listing of Babcock & Brown Capital, an investment fund that will have a concentrated portfolio of investments and an open time frame.

B&B has traditionally offered structured finance products for property, infrastructure, energy and transport assets in the US, Europe and Australia in addition to its operating lease business.

“We are delighted that we have been able to respond so effectively to the opportunities that have become available to us following our IPO last year,” B&B managing director Phil Green said.