10/08/2009 - 15:41

Ozgrowth posts $3.8m full-year loss

10/08/2009 - 15:41

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Perth-based investment company Ozgrowth has recorded a $3.8 million loss for the 2009 financial year following a challenging 12 months.

Perth-based investment company Ozgrowth has recorded a $3.8 million loss for the 2009 financial year following a challenging 12 months.

In its preliminary final report released today, the company said the loss compares with a profit of $4.6 million reported for the 2008 financial year.

"Whilst we are disappointed to report a loss, we gain some comfort from the fact that the original capital we raised has been preserved," chairman Peter Diamond said.

"In January 2008 we commenced our investment activity at what, in retrospect, was the initial onset of the global financial crisis. At that time, we reported net assets per share of 20 cents - a figure which has been maintained at 30 June 2009."

Net tangible asset for each ordinary share was 20.9 cents at the end of June 2008.

Over the 12 months to the end of June 2009, total revenue reached $2.9 million, slightly higher than the previous year's $2.6 million.

However changes in the fair value of investments were recorded at a loss of $7.7 million, pulling revenue down to a loss of $4.8 million for the full-year.

Total expenses for year reached $844,092, nearly half of the previous year's $1.6 million.

Cash at the end of the reporting period was $42.5 million, down slightly from $45.6 million.

No dividend was declared.

In the report Ozgrowth said that with the stabilisation of commodity markets and expected major project development in WA, it will continue to identify and make investments for the portfolio to meet its targeted return levels.

"We are confident that the worst of the difficulties encountered by financial markets in the last year are behind us," Ozgrowth said.

"However, significant issues remain in the real economy and further improvement in financial markets will not be
in a straight line. In this environment, our significant holding of cash is a valuable asset and allows us to take
advantage of situations as they arise."

 

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