The group made a profit before tax for the year of GBP765 000 (GBP309 000). Operating profits have increased to GBP840 000 from GBP263 000 as a result of higher profits realised on sales of investments and an increased fee income achieved by City Group, reduced by the costs of establishing an employee benefit trust. The group's net assets per share, after provision for deferred taxation, have increased 26% to 66p at 30th June 2007 from 52p last year. Lonfin's strategic investments have increased in value by 41% and its general portfolio by 19% after taking into account additions and disposals of investments. This compares with the increase in the FTSE 100 index of 13% and the FTSE Eurotop 300 index of 22% over the year. Headline earnings per share increased by 274.53% to 3.97p (1.06p).
Dividend
To reflect the improvement in the earnings and the company's progressive dividend policy, the board has decided to increase the dividend for the year to 1.10p per share (1.05p).
Prospects
The general portfolio has material interests in oil, natural resources, pharmaceuticals and healthcare, food and beverages and banking. These sectors accounted for 64% of the portfolio by value at 30 June 2007 (69% at 30th June 2006). Management believe that the companies in these sectors in which Lonfin have invested have the potential to outperform the market in the medium to long term. The number of holdings in the general portfolio has decreased from 43 to 39. The group have invested GBP694 000 (GBP238 000) in this portfolio over the year and the average value of each holding has increased from GBP114 000 to GBP168 000. Lonfin have a GBP2 million bank facility and at 30th June 2007 had drawn down GBP1 247 000. This leaves GBP753 000 available for further investment when the board feels appropriate.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
