Managed investment scheme player Arafura Pearls Holdings Ltd has reported a record net profit after tax of $10.05 million, despite a 50 per cent reduction in MIS sales for the 2008 financial year.
The Subiaco-based company increased its NPAT by 121 per cent from last year's result, with basic undiluted earnings per share also more than doubling to $0.08 per share.
Arafura chief executive Andrew Hewitt said the increased NPAT was largely a result of a significant increase in production shell numbers, which boosted the market value of its shell inventory to $41.3 million.
"While the increase in net market value of the inventory is a non-cash revenue item, it adds further strength to our balance sheet in our net tangible assets (NTA), which has increased to $0.31 per share," Mr Hewitt said in a statement.
After seeding about 140,000 shells between July and September 2007, the company expects its watershed harvest of about 100,00 pearls in July next year.
Arafura is now the second largest quota holder in Australia after the Paspaley Group, controlling nearly 20 per cent of Australia's quota.
Arafura achieved $4.5 million in MIS sales in 2008, about half the value of the previous year.
With the likelihood of non-forestry MIS not continuing beyond this financial year, the company says it has identified and is exploring a number of other funding structures to fund its growth.
Arafura Pearls operates a pearl farm and hatchery operation at Elizabeth Bay, and the English Company Islands in the Northern Territory, and has been harvesting Australian South Sea pearls since 2001.
It also recently entered into a joint venture with Arrow Pearls to manage its Beagle Bay operation located on the Dampier peninsula, located about 150 kilometres north of Broome.
