Allco Finance Profit Rises on Increased Investments (Update1)
By Stuart Kelly
Aug. 21 (Bloomberg) -- Allco Finance Group Ltd., an Australian manager of assets such as ships and property, said full-year profit more than doubled after increasing investments.
Net income rose to A$211.7 million ($170 million) in the 12 months ended June 30, from A$96.9 million a year earlier, the Sydney-based company said in a statement today.
The result beat the A$192.4 million median estimate of seven analysts surveyed by Bloomberg. Allco shares fell 10 cents, or 1.1 percent, to A$8.82 at 11:37 a.m. on the Australian stock exchange. The stock gained 24 percent yesterday as financial companies rose after weeks of declines amid a global credit crunch.
The company more than doubled assets under management to A$9.7 billion in its first year since the all-share purchase by Record Investments Ltd. of closely held Allco Finance Group in July 2006.
The company buys assets such as property, ships and aircraft that it can bundle into investment funds and manage for a fee. It is opening an office in Milan as it seeks more investments in Europe.
The firm agreed in March to buy $200 million of wind energy assets in Germany and France, and may look to bundle these into a new investment fund. On June 13, it agreed to buy 50 percent of Italy's Industria Petroli Meridionale Srl.
Allco this month said the impact of the rout in the U.S. subprime mortgage market on the company was ``negligible.''
The company, which also invests in aircraft, was part of the group that failed in a takeover bid for Qantas Airways Ltd., Australia's largest airline.
Allco will pay a second-half dividend of 24 cents, up from 21 cents a year ago.
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