- Net profit after tax (NPAT) increased 46% to $26.9 million, up from $18.4 million for the comparable prior half. This was driven by a combination of record trading volume revenue growth (excluding interest) of 17%, a reduction in cash operating expenses (excluding interest) of 4% and higher net interest income.
- An interim dividend of 17.2 cents per share fully franked which represents 85% of the half-year NPAT. The Board has also increased the target payout ratio on future dividends to 85% of NPAT (previously 75%).
- In addition, a special dividend of 15.0 cents per share fully franked has been declared, totalling $20m.
“I am pleased to announce a 46% increase in NPAT driven by a 21% increase in trading volumes over the prior comparable half. During the period several daily and monthly trading records were set for aggregate and individual contract volumes. Based on these first half volume trends the Exchange anticipates volume based rebates to qualifying participants also to reach record levels. The second half of 2004 has started very encouragingly with July and August to date volumes up 15% over the prior comparable period.
In keeping with the sentiments expressed in the 2003 Annual Report, and following continued review of SFE’s capital position we are able to deliver a $20m special dividend (15.0 cents per share) and a commitment to lift the payout ratio on future dividends to 85% of NPAT. We remain committed to actively managing the capital position of SFE.
Given management initiatives in place in the second half and strong July and August to date volumes, we believe that we will achieve another satisfactory full year result for 2004.”
For additional information please read the attached full report.
