Argo Investment surges to record profit
Financial services company Argo Investment yesterday posted a record 18.9 per cent lift in full-year net profit for 2006-07 to $171.5 million, compared with $144.3 million last year.
However, despite its performance, its shares fell 13 cents to $8.02 — on a day when both the All Ordinaries and the S&P/ASX 200 dropped by just over 100 points (or more than 1.6 per cent).
Operating profit after tax and before realised gains on the sale of long-term investments increased 20.1 per cent to a record $147.9 million, compared with $123.1 million in the previous year.
Operating earnings per share, excluding realised gains on the sale of long-term investments, rose 13.8 per cent to 28.9 cents, compared with 25.4 cents in the previous year.
Managing director Rob Patterson said the result reflects the analytical strength and disciplined approach adopted by the company in evaluating and selecting long-term investment opportunities in the Australian share market.
The company made a 28.5 per cent return on its portfolio in the last year, with several significant investments recorded including BHP Billiton, Telstra Corp, Rio Tinto, Woodside Petroleum and Santos.
Other factors contributing to the performance of Argo, which has total assets of $4.6 billion, were a “strong growth in income from dividends, interest and trust distributions, and a focus on managing costs”.
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