MFS posts $6 million loss
Acquisitions, including the seasonal Mount Hotham and Falls Creek Ski Lift businesses, have not saved boutique fund manager MFS from a net loss after tax of more than $6 million, but the company is maintaining the result was much better than anticipated.
MFS managing director Phil Adams said the $6.339 million loss had originally been forecast to reach $7.75 million, 18 per cent worse than the actual result.
Adams noted that the company’s performance reflected its operations only between its listing on the Australian Stock Exchange in January 2005 and the end of the 2004/05 financial year.
He said the ski lift businesses, although highly profitable during the ski season from mid June to mid October, tended to operate at a loss through the rest of the year which included the period in which the results occurred.
“Apart from the organic growth achieved through the inflow of retail and superannuation investments, further growth will be achieved by further acquisitions, Adams said. “This is consistent with the investment company approach taken by MFS in recent times.”
The company has recently restructured its business after it took a controlling interest in listed resort and holiday group Breakfree and then relocated all key management staff to the Gold Coast.
Several staff were retrenched as a result of the restructure, and general manager Sean Preece opted to leave the company and stay in Sydney in preference to moving his family to Queensland.
Steve Kyling from Challenger was recruited to lead the company’s Premium Income mortgage fund.
Recommended for you
In this week’s episode of Relative Return Unplugged, AMP chief economist Shane Oliver joins the show to unravel the web of tariffs that US President Donald Trump launched on trading partners and take a look at the way global economies are likely to be impacted.
In this episode of Relative Return, host Laura Dew is joined by Andrew Lockhart, managing partner at Metrics Credit Partners, to discuss the attraction of real estate debt and why it can be a compelling option for portfolio diversification.
In this week’s episode of Relative Return Unplugged, AMP’s chief economist, Shane Oliver, joins us to break down Labor’s budget, focusing on its re-election strategy and cost-of-living support, and cautioning about the long-term impact of structural deficits, increased government spending, and potential risks to productivity growth.
In this episode of Relative Return, host Laura Dew chats with Mark Barnes, head of investment research, and Catherine Yoshimoto, director of product management, from FTSE Russell about markets in Donald Trump's second presidency and how US small caps are faring compared to their large-caps counterpart.
