Milton Investments Reports 82% Increase In Profits

By Glenn Dyer | More Articles by Glenn Dyer

Listed investment company, Milton Investments Ltd (MLT) has reported a $75.6 million net profit after tax for the second half of 2007, an increase of 82% from the previous corresponding period.

The company said its gains jumped significantly thanks to the increased corporate activity during the half year, although it expects the rate of profit growth to slow.

"Investment income growth from the underlying portfolio was 8%, whilst income from increased investments added a further 16%," chairman Robert Millner said.

"All the retail banks in the portfolio increased their dividends, resulting in an average increase of nearly 14%, The Bank of Queensland led the way with an increase of 23%, managing director Frank Gooch said.

The net profit of $75.6 million for the half-year ended 31 December 2007, included special dividends of $2.4 million and gains from the disposal of investment of $32.1 million.

Commenting on the profit outlook for the full year, chairman Robert Millner said, "the economy remains sound and generally companies are generating increasing profit".

"However the rate of profit growth is likely to slow as a result of cost increases and recent rises in interest rates.

"The volatility in the share market is likely to continue in the short term and this should provide opportunities for long term investors such as Milton," he added.

Despite the record profit, shares in Milton fell, pulled down by the greater market. They finished $1.02 down at $19.91.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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