MENU

IMF exceeds expectations

IMF (Australia) Limited (ASX: IMF) reported on 22 August 2012 preliminary full year results with net profits coming in at $42m.  Dividends for the full year were declared at 10 cents per share fully franked.

In our previous articles, we set expectations for IMF to achieve an average net profit per year of at least $24m.  This has been easily met, but dividends of 10 cents fell short of our expected 15 cents per share. We also estimated that after the Centro payback, IMF’s cash would exceed $100m.  The balance sheet shows $130m in current assets, before payment of dividend.

As at 30 June 2012, IMF had a case investment portfolio of $1.2b.   This does not include the Wyvenhoe Case and the major portion of the Banks Fees Case.  Other important figures include the amount invested in cases being $66m. and book value increasing to $111m.

Foolish takeaway

The current market capitalisation of IMF at $1.65 is $200m.  The current assets less convertible notes liability is $95m, which accounts for nearly half the market capitalisation.  The implication is that the current case portfolio is worth only $105m.  IMF has already spent $66m, and based on its past track record, we expect this to generate at least $200m ($3 for every $1 spent) over the next 3 years.

In summary, IMF’s financial performance has easily exceeded our expectations, and the balance sheet has improved.

If you’re in the market for some high yielding ASX shares, look no further than our Secure Your Future with 3 Rock-Solid Dividend Stocks report. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

More reading

Motley Fool contributor Peter Phan owns shares in IMF. The Motley Fool‘s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!