INVESTORS shaved 11 cents off RAMS Home Loans' share price yesterday, despite the mortgage lender posting a net profit after of $43.5 million.
RAMS’ bottom line net profit after tax was $15.1 million – in line in with its prospectus forecast. This is RAMS’ first profit result since listing on the Australian Stock Exchange last month.
Yesterday, RAMS shares closed 11 cents lower to close at a low of $1.05.
This was probably due to the uncertainty in RAMS future. Chief executive Greg Kolivos said yesterday the company will not know the full extent of the impact from the
RAMS has been unable to effect rollovers on two XCP programs totalling $6.17billion and as a result these programs have been extended.
“The directors anticipate that this increase in the cost of funding will have a material negative impact on the company’s published FY08 forecast.
“The full extent of this effect will only be known when the refinancing has been completed, the result of which will depend on market conditions at the time.
“The Directors will continue to monitor the impact on RAMS funding programs and will keep the market informed of any developments,” Kolivos said.
As at June 30 2007, RAMS loan book at June 30 07 stands at $13.7 billion – up 37% on FY06.
Australian Property Journal
