LIC Djerriwarrh makes dough
Listed investment company Djerriwarrh Investments has posted a profit of $16.1 million for the six months to December 31, up 23.3 per cent on the previous corresponding interim period.
An increase in franked dividends received from its investment portfolio, in line with key performance objectives, was a major contributor to interim profits, as was income from trusts.
Franked dividends were up 50.7 per cent to $5.2 million on last year, including $3.4 million associated with participation in the Telstra buy-back of its shares. Income from trusts was up by $2.8 billion, including $2.6 million in special distributions from Macquarie Infrastructure Group.
On the down side, income from options trading was down $6.6 million, largely reflecting a company decision to “roll out and up” in its money call options at the end of the half-year to retain exposure to selected securities that would otherwise have been exercised.
Realised gains on the disposal of investments as a result of exercising call options and the sale of some investments in Djerriwarrh’s investment portfolios amounted to $4.3 million.
Its profit result for the half year also included an income tax credit of $0.7 million reflecting the higher component of fully franked income relative to taxable income. This compares to a $0.9 million tax expense for the previous corresponding half-year.
The company has declared an interim dividend of 10 cents per share fully franked, unchanged from last year’s interim dividend.
Earnings per share for the half-year were 10.2 cents, and increase of 17.1 per cent on last year’s corresponding EPS of 8.7 percent.
Net asset backing as at December 31, 2004, was $3.73 (before allowing for the 10 cent interim dividend), up from $3.40 at June 30, 2004
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