IMF reports $3.3m net profit, up 65%

Litigation funding provider IMF (Australia) Ltd has reported a net profit of $3.3 million for the six months to December 2007, representing a 65 per cent rise over the corresponding period last year.

Total income from continuing operations rose 37 per cent to $9.0 million over the period due to a total of eight matters concluding during the half-year, while EBITA increased by 39 per cent to $6.0 million.

The group's cash position was $31.7 million, having generated $7.8 million in the six months to December 2007.

On Friday, IMF revealed basic earnings per share of 2.91 cents for December 2007, up from 1.78 cents in the corresponding period of last year.

The company, which is jointly run between offices in Sydney and Perth, expects to report net profit before tax of at least $15 million and net profit after tax of at least $10 million for the full 2008 financial year, equating to earnings per share of just over 8 cents.

In determining how best to distribute surplus funds, IMF has implemented a share buy back, with plans to acquire about 11.3 million shares in the company equating to almost 10 per cent of the 144.4 million issued shares on issue.

Shares in the company ended the day even at 50 cents each.