Small Melbourne-based listed investment company (LIC), Mirrabooka Investments (MIR), is paying a special dividend as well as keeping its ordinary final for the year steady, despite a fall in earnings and revenue for the year to June 30.
The company told the ASX yesterday in one of the earliest of the June 30 profit reports so far, that it will not only maintain its final 6.5c a share final dividend, but will pay a special 5c a share (fully franked). That’s on top of the steady 3.5c a share interim dividend paid in February.
Mirrabooka explained that the special dividend will come from the "large after- tax realised gains made during the year including the sale of two of Mirrabooka’s largest holdings, Hastings Diversified Utilities Fund and Australian Infrastructure Fund in the year to June.
"4 cents of the 6.5 cents final dividend and the entire 5 cent special dividend are sourced from capital gains, on which the Company has paid or will pay tax. The amount of the pre-tax attributable gain, known as an “LIC capital gain”, is therefore 12.9 cents.
"This enables some shareholders to claim a tax deduction in their tax return. Further details will be on the dividend statements," directors explained yesterday
Mirrabooka’s Reported Profit was $10.3 million for the twelve months to June 30, down from $12.8 million earned in 2011-12.
Net Operating Result, which measures the underlying income generated by the portfolio, was $8.3 million, down marginally from $8.4 million last year.
Revenue from operating activities was $9.9 million, 6.7% down from 2011-12.
The company said its best performing stocks in the portfolio over the year were REA Group, Austbrokers Holdings, Tox Free Solutions, Australian Infrastructure Fund and Invocare.
"The disposal of two of our largest holdings through takeover activity and other sales in overvalued stocks gave us the opportunity to significantly rebalance the portfolio.
"A number of new companies were added, including Bega Cheese, Brickworks, BlueScope Steel, Ingenia Communities Group, Horizon Oil, Seek and Vocus Communications. We also made a major addition to our existing investment in Toll Holdings.
"Domestic economic conditions, which are a barometer of the performance of the small and mid- cap sectors, are currently difficult.
"Business confidence remains subdued from the combination of poor consumer sentiment, the high Australian dollar, labour market conditions, the passing of the peak in mining investment and policy uncertainty. However sentiment can turn around relatively quickly if these headwinds abate.
"We believe Mirrabooka’s portfolio is currently well positioned with spare capacity for further investment as we find opportunities," directors said.
Mirrabooka shares reacted positively to the news of the special dividend and the shares rising more than 4% or 11c at $2.47 at one stage.But they eased at the end to close up 2c, or less than 1% at $2.38.
MIR 1Y – Mirrabooka pays a special dividend to keep shareholders happy
