OFM a winner as a listed investment firm

OFM Investment Group has reported higher than expected year-end net profits, which were 9.2 per cent higher than forecast when the group listed on theAustralian Stock Exchange(ASX) in March this year.

At $6.8 million, net profits were nearly half a million dollars higher than expected for the year ending June 30, 2002, in spite of challenging market conditions and weakness in the equity markets.

“This is a strong result by OFM in its first year as a public company, especially given the turbulence and poor performance in other market sectors in the last 12 months,” OFM chief executive officer Michael Rehak says.

“The higher profit was achieved through an improved focus on cost efficiencies, greater than expected funds under management, and a strong performance in our property lending activities,” he says.

The group will make its first dividend payment to shareholders, worth 5 cents per share for the six months ending June 30, 2002. Net revenues for the 2002 financial year were slightly lower than forecast at the time of the ASX listing, at $19.6 million instead of an expected $20 million.

Meanwhile, the group intends to push its growth further this year by releasing the group’s first property trust, which will be built around its recent acquisition of an industrial warehouse in North Altona and a 12-storey property on St Kilda Road.

“While we see the equities market remaining flat overall in the coming year, we see continued support for quality property assets and vehicles such as property trusts,” Rehak says.

OFM was created in July 2001, through the demutualisation of the Over 50s Mutual Friendly Society, which was Australia’ second largest friendly society prior to demutualising, with $1.2 billion in assets and funds under management.