Profit makers in good company

ONLY 10 of the 20 companies ranked from 41 to 60 in the Business News list of publicly listed companies made a profit for the 2000/2001 financial year.

The top five profit producers for this group of companies in order from highest to lowest are: Great Southern Plantations $21.92 million; Consolidated Minerals $12.51 million; St Barbara Mines $9.35 million; Schaffer Corporation $8 million; and Equigold $6.22 million.

Consolidated Minerals and Equigold were the best performers out of the top five profit makers when comparing previous and current financial year operating profits, with increases in operating profit of 451 per cent and 118 per cent respectively.

Other strong performers in this area were: National 1 Limited, which recorded an increase of 6087 per cent as its profit increased from $10,000 to $500,000; Amalg Resources, which turned a loss of $220,000 to a profit of $2.48 million (an increase of 1237 per cent); and Merchant House International, which recorded an increase of 184 per cent, as operating profit improved by $2.98 million.

The strongest performers on the Business News list in terms of market capitalisation were Equigold, Scientific Services and Consolidated Minerals, according to the Deloitte Touche Tohmatsu’s list of WA’s top 150 companies.

Of these companies, Equigold enjoyed the best growth as market capitalisation increased $31 million to $81 million. Its share price rose from a 2001-year low of 38 cents to a year high of 63 cents, and is now trading at 77 cents, further improving its market capitalisation.

Scientific Services’ market capitalisation increased by $21 million to $51 million and Consolidated Minerals experienced a healthy growth of $13 million to a market capitalisation of $62 million as of December 31 2001.

The five companies to record the biggest losses on the Business News list were: New Tel Limited $52.31 million; Foundation Health Care $28.34 million; Orbital Engine Corporation $26.56 million; HP JDV Limited $17.18 million; and Yates Limited $5.89 million.

From this group HP JDV Limited experienced the greatest loss as it slipped from an operating profit of $4.53 million to an operating loss of $17.18 million a turn around of 479 per cent for the 2000/2001 financial year.

This loss also significantly affected HP JDV’s market capitalisation which fell $30 million to $70 million as of 31 December 2001, as its share price fell from last years high of $1.39 to its current price of 70 cents.

But HP JDV’s loss was not the highest in the Business News list in terms of percentage change when comparing current and previous financial year profit/loss, this dubious honour went to Kresta Holdings with a turnaround of 488 per cent as it went from an operating profit of $1.09 million to an operating loss of $4.21 million.

HP JDV Limited were not the only company experiencing financial difficulties, SDS Corporation recorded a loss of $1.43 million after recording a profit of $460,000 for the 1999/2000 financial year.

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