Allco Finance Group has seen a 56.8% lift to $96.9 million in after tax net profit for the year ended 30 June 2006.
Formerly known as Record Investments, the Sydney based the diversified financial group declared earnings per share for the year were 49.6 cents – an increase of 33% on the previous corresponding period.
Directors declared a final fully franked dividend of 21 cents per share, which is payable on September 13, 2006.
Total dividends for the financial year ended June 30, 2006 will be 41 cents per share, a 34% increase over the previous corresponding period.
Allco’s executive chairman David Coe said the group’s solid performance was underpinned by further significant growth in investments across its core asset classes, and continued diversification of its portfolio.
Total investments of the Group grew from $799 million to $1.2 billion, representing a 50.4% increase.
Amongst its key investments undertaken during the period acquiring interests in 17 commercial aircraft for approximately $156 million; drawing mezzanine funding to $98 million for Allco to acquire and warehouse a portfolio of CBD office towers.
Coe added that it invested $35 million in a rail portfolio and increased investment in small ticket equipment leasing transactions by $66 million.
He added that the Group grew its securitisation program investments by $83 million to finance pools of diversified loans securitised in the capital markets and invested $7 million in a wind farm project.
“While only early days for the merged entity, we have delivered on EM forecasts and continue to integrate the two businesses to plan.”
“As outlined in the EM, a fully integrated business combines the origination and structuring expertise of Allco with the capital base and investment management skills of Record.”
He said the pro-forma results for the merged entity have been prepared to reflect the results of the combined businesses had they operated together throughout the year ended June 30, 2006.
The Sydney based company said on a pro-forma basis, the merged entity results were broadly in line with the expectations outlined in the EM.
Total net revenue for the Group was $306.6 million compared with EM proforma forecast net revenue of $299.4 million.
Coe said Allco Group’s strategy will be to retain a strong focus on the core asset classes of aviation, shipping, rail, property, small ticket equipment and financial assets.
“We will also progressively but selectively, extend our activities into new asset classes that exhibit similar strong cash flows and market depth, as we have started to do in the area of infrastructure and renewable energy assets.
“Allco will build on its current global footprint by further expansion within its existing locations and considered expansion into selected new markets.”
In line with Group strategy, Allco will create and manage additional listed and unlisted investment vehicles in order to support the company’s growth and generate increasing regular annuity management fees.
Allco will also continue to invest as principal in selected core and specialist assets.
Allco is confident that a strong business platform is in place with a pipeline of transactions and opportunities available to target EPS growth of at least 20% for 2007 based on the Merged Entity’s pro-forma EPS for 2006.
By Nelson Yap
