THIS year’s profit reporting season has provided plenty of positive news for parochial Western Australian investors.

Two of the best performers have been Fleetwood Corporation and Schaffer Corporation, which have reported strong growth in earnings and the prospect of more to come (see accompanying articles).

They have also delivered outstanding returns to shareholders, with total returns over the past three years of 68.5 per cent for Schaffer and 60.9 per cent for Fleetwood (see Total Shareholder Return feature for full details, pages 17-20).

Other mid-cap WA stocks to have performed strongly include Internet company iiNet, engineering group Monadelphous, auto parts supplier Coventry Group and manufacturer Kresta Holdings.

These companies have had a mixed earnings record over the past few years and have tested the loyalty of shareholders, but their profits and returns to shareholders are now looking more impressive.

Since listing in 1999, iiNet shareholders have experienced both sides of the technology boom. 

Those still along for the ride have experienced a very strong recovery during 2003 and a three-year TSR of 23.7 per cent.

iiNet remains well placed to participate in the continuing consolidation within the ISP market with the ability to fund acquisitions from strong cash flow from a growing subscriber base.  The company recently reported a 20 per cent increase in annual net profit to $5.2 million on operating revenue of $40 million.

Monadelphous has reported record sales and profits on the back of contract work on major resource projects.

Its annual net profit rose 48 per cent to $7.1 million.

This was good news for shareholders, who enjoyed a TSR in the year to June 2003 of 56.5 per cent.

Plantation manager Great Southern, which has benefited from rapid growth in sales of its blue gum plantations, and Home Building Society, which has been helped by the home lending boom, are other WA stocks that have brought home the bacon for their loyal shareholders

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