re: 27% profit increase ... report
SFE unveils 27 per cent profit increase February 22, 2006 - 5:59PM
SFE Corporation Ltd says trading volume in the opening weeks of 2006 is up six per cent.
The holding company for the Sydney Futures Exchange unveiled a 27 per cent increase in annual net profit to $69.163 million.
The profit growth resulted from record exchange traded volumes, higher net interest income and reductions in cash operating expenses, the SFE said.
SFE managing director and chief executive officer Robert Elstone said exchange trading volumes and depository holdings were at record levels.
"Very satisfactory operating and financial performance in 2005 reflected a strong growth trend across the SFE group's activities, with both exchange trading volumes and depository holdings continuing at record levels," he said.
"Since balance date trading volumes have been strong, with year to date volumes up six per cent over the comparable period in 2005."
The SFE posted 18 per cent growth in exchange traded volumes for the year resulting in a record 64.3 million contracts traded in 2005.
The average fee earned by SFE per exchange traded contract rose to $1.49, up from $1.45 in 2004, the firm said.
"Whilst the average fee earned on exchange traded contracts increased, many users of the exchange were again rewarded with significant rebates and the abolition of participation fees," he said.
"Rebates paid to users of the exchange were at record levels in 2005 with over $20 million paid."
The SFE's total revenue (excluding interest) rose by 15 per cent to $134.9 million.
Mr Elstone said the SFE's future growth is likely to come from ongoing improvement to its core derivative product and OTC clearing franchises.
"In the fourth quarter of 2005, SFE successfully concluded the regulatory approval processes and contractual negotiations that enabled it to plan to list contracts for difference (CFD) which currently trade in the OTC market," he said.
The SFE plans launch CFD in conjunction with CommSec as well as other on-line brokers.
The SFE declared a final, fully franked, dividend of 22.4 cents per share, up from 16.7 cents in 2004.
The total dividends for the year was a fully franked 43.7 cents per share compared to 48.9 cents the previous year, which included a 15 cent special dividend.
SFE Price at posting:
0.0¢ Sentiment: None Disclosure: Held
