SFE Announces 2005 Full Year Result

SFE Corporation Limited, holding company for the Sydney Futures Exchange, today released its financial results for the year ended 31 December 2005. The complete Annual Report, including the audited financial statements, has been released to the ASX and is available on the SFE website as set out at the end of this release. The highlights include:

• Net profit after tax (NPAT) of $69.2 million, up 27% from $54.5 million for 2004. The profit growth resulted from record exchange traded volumes, higher net interest income and reductions in cash operating expenses.
• Revenue (excluding interest) of $134.9 million reflected an increase of 15% on the prior year.
• Total expenses (excluding interest paid to participants) reduced by 2% from 2004.
• The 18% growth in exchange traded volumes resulted 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.
• A final, fully franked, dividend of 22.4 cents per share (up from 16.7 cents in 2004) was declared, bringing the total dividend for the year to 43.7 cents per share (fully franked).

In releasing the results, SFE’s Managing Director and CEO, Robert Elstone said

“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.

These factors resulted in increased returns to shareholders with the ordinary dividend increasing 29% over 2004 (SFE pays out 85% of NPAT).

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. Rebates paid to users of the exchange were at record levels in 2005 with over $20 million paid.

Since balance date trading volumes have been strong, with year to date volumes up 6% over the comparable period in 2005.

We have continued with best practice in releasing the full Annual Report for 2005 today and recommend it to shareholders and analysts wishing to track SFE’s progress. The Annual Report has been prepared under the new Australian equivalents to International Financial Reporting Standards. The effect of the new standards has not been particularly significant.

For further information please refer to the full report on SFE’s website (www.sfe.com.au\2005annualreport).