28/04/2008 - 13:59

IMF nearly doubles profit forecast

28/04/2008 - 13:59

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Litigation funder IMF (Australia) Ltd has scaled up its earnings forecast for the current financial year, advising that its net profit after-tax is expected to be at least $15 million and could be as high as $19 million.

IMF nearly doubles profit forecast

Litigation funder IMF (Australia) Ltd has scaled up its earnings forecast for the current financial year, advising that its net profit after-tax is expected to be at least $15 million and could be as high as $19 million.

Its previous forecast was for a net profit after tax of "at least $10 million".

The company said the final outcome would depend on the dividend paid by the administrators of failed miner Sons of Gwalia Ltd.

It also indicated that its earnings had been boosted by the settlement of the Wright vs Wright matter, which has resulted in IMF gaining a $22 million payout, as reported last week.

 

Full announcement pasted below:

REVISED FORECAST RANGE
1. On 15 February 2008 the Board of Directors of IMF (Australia) Ltd ("IMF")
announced that it expected to report a Net Profit Before Tax of at least $15M
and Net Profit After Tax of at least $10M ("the Forecast").
2. On Wednesday 23 April 2008 IMF announced that the Wright matter had
settled. This matter had not been included in the Forecast.
3. The Board now expects to report a Net Profit Before Tax of at least $22M and
Net Profit After Tax of at least $15M. However, the Net Profit Before Tax
could be $28M and Net Profit After Tax could be$19M ("the Revised Forecast
Range"), depending upon a number of items (referred to below). This revised
forecast range equates to earnings per share of between 13.5 cents and 16.6
cents.
4. The outcome will depend upon the dividend paid by the Administrators in the
Sons of Gwalia matter in the forecast period and the costs associated with the
possible early redemption of the outstanding convertible notes. The Board has
adjusted the original forecast to take into account the provisional result in
Meadow Springs (i.e. before the outcome of the appeal is known) and a small
number of other possible liabilities. The Board has also made a provision in
relation to the operation of the employee bonus pool and removed the profit
from some matters as it is now likely that this profit will fall into the early part
of the next financial year.
5. The Wright matter is one of the matters referred to in the Announcement on
10 April 2008.

 

 

 

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