14/08/2008 - 09:49

MIS sales boost TFS Corp profit up 44%

14/08/2008 - 09:49

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A boost in sales of the Perth-based TFS Corporation Ltd's managed investment scheme product has driven its full-year net profit up 44 per cent to $28 million, exceeding expectations.

A boost in sales of the Perth-based TFS Corporation Ltd's managed investment scheme product has driven its full-year net profit up 44 per cent to $28 million, exceeding expectations.

MIS product sales for the 2008 financial year were up 45 per cent from 558.5 hectares to 813.7ha which underpinned a 52 per cent increase in revenue to $68.4 million and a 58 per cent rise in cash profit after tax of $22.9 million, before asset revaluations.

"Reported earnings are slightly higher than the guidance provided to the market on 1 July 2008, following finalisation of MIS sales at nearly 814 hectares, a 45% increase over FY07 and materially higher than the 650 hectares of sales projected at the outset of the year," TFS said.

Total earnings per share were up from 12 cents in fiscal 2007 to 14.9c.

The company declared a fully franked dividend of 4c per shares, up from the previous year's 3.4c.

At the end of the 2008 financial year, TFS had a net cash position of $5.2million and said it will move to a "modest" debt position once the $29 million acquisition of Albany-based essential oils business Mount Romance Australia is finalised.

"TFS retains a strong growth outlook, both over the short and longer term, as we build on the momentum apparent in our MIS product, progressively benefit from our vertical integration initiatives and capitalise on the highly supportive global demand outlook for our sandalwood-based produce," executive chairman Frank Wilson said.

"Key priorities for TFS in FY09 will be the pursuit of further alliances with major global fragrance houses, increased focus on research and development aimed at expanding the sandalwood bi-products market, and greater emphasis on global institutional investor growers to supplement existing MIS growers."

TFS' outlook is for at least a 10 per cent increase in total MIS sales in FY09 to over 900 hectares and a similar increase in net profit after tax, minus any contribution from Mount Romance.

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