Dividend fall hits Mirrabooka profit
Mirrabooka reported a net profit of $6.3 million for the six months to December 31, down from $6.9 million for the previous corresponding period.
The investment fund's portfolio return was 12 per cent for the half. In that time the S&P/ASX 200 Index rose 13.3 per cent.
Mirrabooka general manager Geoff Driver said the $270 million fund, which invests in small and mid-sized companies, was unfazed by the decline in dividend income given it had $24 million in cash to reinvest ahead of the upcoming reporting season.
"We do quite often change the mix of the portfolio, and sometimes that means that some dividend-paying stocks are sold off," he said.
"But we have cash to invest. So we'll be looking to put that back into the market.
"We'll see what the reporting season has to offer and make some further assessment from there."
In adjusting the portfolio through the period, Mirrabooka acquired new holdings in Vocus Communications, Bega Cheese, Brickworks, Seek, BlueScope Steel, Horizon Oil and JB Hi-Fi.
These were funded by major sales in Hastings Diversified, Little World Beverages and Acer Energy as a result of takeover activity, among others.
Mr Driver said the fund had acquired a new holding in JB Hi-Fi and BlueScope because they still represented reasonable value, despite recent troubles for both companies.
"They've been under a fair bit of pressure for different reasons over the last few months," he said.
"I think they're making adjustments in response to the environment they're operating in. They're facing a difficult environment, but we're still a comfortable investor at this point."
Mirrabooka's net operating result, which measures the underlying income generated by the portfolio, was down 4.4 per cent to $4.3 million.
Revenue from operating activities was $4.9 million, 7.7 per cent down from the same period last year.
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Mirrabooka said its net profit for the six months to December 31 fell to $6.3 million from $6.9 million a year earlier — a 9% drop — largely because dividend income declined and its stake in Hastings Diversified Utilities Fund lost value.
Mirrabooka reported a portfolio return of 12% for the half, compared with the S&P/ASX 200 Index rise of 13.3% over the same period.
The $270 million Mirrabooka fund said it held about $24 million in cash to reinvest ahead of the upcoming reporting season. Management said they often change the portfolio mix and will look to put that cash back into the market after assessing reporting updates.
During the period Mirrabooka acquired new holdings in Vocus Communications, Bega Cheese, Brickworks, Seek, BlueScope Steel, Horizon Oil and JB Hi‑Fi.
The fund funded its new holdings with major sales in Hastings Diversified, Little World Beverages and Acer Energy, among others. Some sales were driven by takeover activity and portfolio rebalancing.
Mirrabooka's general manager Geoff Driver said JB Hi‑Fi and BlueScope still represented reasonable value despite recent pressures. He noted both companies are making adjustments to the operating environment and the fund remains a comfortable long‑term investor in them.
Mirrabooka's net operating result, which measures underlying income from the portfolio, fell 4.4% to $4.3 million. Revenue from operating activities was $4.9 million, down 7.7% from the same period the previous year.
According to Mirrabooka, investors should watch how the reporting season affects company earnings and dividends, since the fund plans to assess reporting outcomes before deploying its $24 million cash. Any further portfolio adjustments or dividend updates could shape the fund's returns.
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