Mirrabooka outperforms previous year

Investment company Mirrabooka Investments has stated that the improving market environment, and therefore bigger dividends provided by companies, contributed to its high performance in the last six months.

Mirrabooka has released its half year report to 31 December 2010, in which the company reports a net profit of $7.6 million in the six months to 31 December 2010 — outperforming the same period from 2009 by $2 million.

Mirrabooka, which specialises in investing in small to medium size businesses listed in Australia and New Zealand, attributes its profit growth to higher dividends provided by companies as a result of the improving market conditions.

“The major increase in income came from the rise in dividends received as companies began to improve the level of dividends paid as operating conditions stabilised and balance sheets were restored,” said Mirrabooka managing director, Ross Barker.

Mirabooka’s half year report demonstrated a number of purchases through over the past six months, including G8 Education, Ridley Corporation and iSelect (which expects to be soon listed).

Barker said the approach the company had taken involved avoiding the speculative parts of the market, “such as smaller resource companies”.

“This doesn’t mean we’re avoiding resource companies altogether, but we tend to invest in those that provide dividends,” Barker added.