The summary highlights are attached to this release and the full annual report including the financial report for the 2001 year is available on www.sfe.com.au. The highlights include:
- Net profit after tax of $21.4 million - a sizeable increase on the $4.5 million net profit after tax in 2000. Net profit after tax increased 86% on the 2000 pre-abnormal profit after tax of $11.5 million.
- A final dividend of 7.7 cents per share, fully franked, taking the total dividends for the year to 12.0 cents per share, fully franked, or $15.6 million.
- Return on equity of 14.5% for the year.
- Earnings per share of 16.5 cents, (17.8 cents pre goodwill amortisation).
- Shareholder funds rose to $148.1m from $142.8m in 2000.
- Exchange revenues were up 7% on 2000, with trading volumes at the highest level ever in SFE's history, while average exchange fees were reduced by 7%.
Several other major initiatives completed during the year included a corporate restructure, capital adequacy review, and the implementation of a new clearing technology platform. These will assist SFE in meeting its objectives of enhancing both its customer and shareholder value propositions in 2002 and beyond.
SFE's share price on the Austock exempt market rose significantly over the 2001 year, a reflection of the strong performance and the transformation of the group to a commercially focused organisation. We expect to be listed on ASX mid-April."
SFE Corporation Limited (SFE) is a provider of exchange-traded and over-the-counter financial services for institutional investors globally. Fully electronic and with 24-hour trading capability, SFE offers trading products for investment and risk management and disseminates market data and information. SFE Clearing is the fully owned clearing and settlement arm of SFE Corporation Limited, and provides central counterparty clearing, central securities depository and cash settlement services. www.sfe.com.au
Highlights of 2001
Volumes
- A record 35.8 million futures and options contracts were traded at SFE, an increase of 15%
- Average daily volume at SFE rose to 141,683 15% higher than the previous year
- Total futures trading at SFE rose to 34 million, up 18%, whilst total options trades were 1.8 million, down 25%
- Trading at NZFOE rose to 1.1 million, up 18%
- Total group volume including both SFE and NZFOE was 36.9 million, up 15%
- 3 Year Bond Futures set a new record of 15.7 million contracts traded, up 27% from the previous year
- Net profit after tax (NPAT) for the year was $21.4m, an increase of $16.9m
- A final dividend of 7.7 cents per share was declared, bringing the total for the year to 12.0 cents per share
- Shareholders equity (Net Assets) at 31 December 2001 was $148.1m or $1.14 per share compared to $142.8m or $1.10 per share the previous year
- Total shareholder returns for the year to 31 December 2001 were: Return on equity: Book value basis (total accounting returns/book value of equity) 14.5% Return on investment: Market value basis (increase in share price + dividends/share price) 61%
- Corporate restructure: SFE Corporation Limited changed its name from Sydney Futures Exchange Limited and now conducts its Australian exchange business through a wholly owned subsidiary
- Capital adequacy review: a review of group capital by the Board was conducted in the second half of 2001
- Four additional Independent Software Vendors (ISVs) were coded to the SYCOM® trading system in 2001, expanding the trading capability in both US and European markets
- A US communications hub went live in November 2001
- The integration of Austraclear was completed in June 2001
- Bond and Repo Clearing was launched in September, receiving widespread market support
- The SFE clearing and settlement systems for futures and options were upgraded with the installation of the OM SECUR™ platform in mid December 2001
- The clearing and settlement of Commonwealth Government Securities previously undertaken by the Reserve Bank of Australia (RBA) was transferred to SFE shortly after balance date in February 2002
