Market downturn trims profits at AMCIL

THE investment fund AMCIL returned a slight profit drop for the first half as the sharemarket downturn cut trading income across the $148 million fund.

By InvestSMART · 24 Jan 2012

By InvestSMART ·
24 Jan 2012

Comments

THE investment fund AMCIL returned a slight profit drop for the first half as the sharemarket downturn cut trading income across the $148 million fund.

AMCIL, which was once aligned with stockbroking firm JBWere and includes several of the broking firm's former executives, posted a net profit of $4.93 million for the six months to end-December, a drop of 2.2 per cent from a year earlier.

No interim dividend was declared which, AMCIL said was in line with the company's practice. AMCIL's investment portfolio made a positive return of 0.5 per cent for the first half, which beat the S&P/ASX 200 Index return of negative 9.7 per cent.

AMCIL gained holdings in Hastings Diversified Utilities Fund, Telstra, Eastern Star Gas, Senex Energy and Transurban in the first half.

It trimmed its holdings in companies including Perpetual, Alumina and Iluka Resources and maintained a limited exposure to discretionary retail stocks and smaller resources companies.

AMCIL's net tangible asset backing per share before any provision for tax on unrealised gains at end-December was 74? per share, down from 79? at the end of the previous corresponding period.

The fund's top holdings by value are Hastings Diversified Utilities Fund at $11.9 million, Commonwealth Bank at $8.6 million and Westpac on $7.3 million.

AMCIL had $4.5 million in cash and another $10 million in debt facilities. Total revenue rose 2 per cent to $4 million as dividends and distributions from investments, as well as revenue from deposits and bank bills, climbed.

But AMCIL's net operating result fell 9.4 per cent to $3 million, largely due to a $536,000 net loss on its trading portfolio during the first half.

Go to Google News, then click "Follow" button to add us.

Share this article and show your support

Frequently Asked Questions about this Article…

How much profit did AMCIL report for the first half and how did it compare to the prior year?

AMCIL posted a net profit of $4.93 million for the six months to end‑December, a decline of 2.2% compared with the same period a year earlier as the sharemarket downturn trimmed trading income across the $148 million fund.

Did AMCIL declare an interim dividend for the first half?

No. AMCIL did not declare an interim dividend for the first half, and the company said that decision is consistent with its usual practice.

How did AMCIL’s investment portfolio perform versus the S&P/ASX 200 in the first half?

AMCIL’s investment portfolio returned 0.5% for the first half, outperforming the S&P/ASX 200 Index, which fell by 9.7% over the same period.

Which stocks did AMCIL add to its portfolio during the period?

During the first half AMCIL increased holdings in Hastings Diversified Utilities Fund, Telstra, Eastern Star Gas, Senex Energy and Transurban.

Which positions did AMCIL reduce or keep limited exposure to?

AMCIL trimmed positions in Perpetual, Alumina and Iluka Resources, and maintained only limited exposure to discretionary retail stocks and smaller resources companies.

What are AMCIL’s biggest holdings by value?

AMCIL’s top holdings by value were Hastings Diversified Utilities Fund ($11.9 million), Commonwealth Bank ($8.6 million) and Westpac ($7.3 million).

What was AMCIL’s cash and borrowing position at the half-year?

At the end of the period AMCIL held $4.5 million in cash and had access to a further $10 million in debt facilities.

How did revenue and operating profit change, and what drove the operating result?

Total revenue rose 2% to $4 million as dividends, distributions and deposit/bank‑bill income climbed, but AMCIL’s net operating result fell 9.4% to $3 million—largely because the trading portfolio suffered a $536,000 net loss in the first half.