Sydney Futures Exchange Announces Year 2000 Profit And Financial Outlook For 2001

The Sydney Futures Exchange (SFE) today released its financial results for the year ended 31 December 2000, which includes three-and-a-half months of operations as a demutualised, shareholder-owned corporation.

The full financial results report for year 2000 is attached to this release. The highlights include:

• Net profit before tax and abnormal items of $14.7 million - an increase of 13.1% on $13.0 million in 1999
• Pre-abnormal profit after tax of $11.5 million - down 4.9% on $12.1 million the prior year
• Profit after tax and abnormal items of $4.5 million - a turnaround from a $7.1 million loss in 1999 (the 1999 loss was principally due to the write-down of all trading system related software and hardware as part of the transition from floor to electronic trading)
• No dividend will be paid in respect of the year ended 31 December 2000 - however an interim dividend will be declared in September 2001 based on SFE's first calendar half-year of trading as a demutualised, exempt market listed entity
• Increase in cash on hand to $108.5 million - up from $95.7 million in 1999.

In releasing the results, SFE's Managing Director and CEO, Robert Elstone, said: "SFE's year 2000 financial performance was pleasingly solid and we would expect profitability to grow in 2001.

"Last year's financial result was heavily impacted by non-recurring abnormal costs, such as those relating to the demutualisation and listing process (completed 1 November) and by the merger with Austraclear (completed 18 December 2000). Additionally, SFE also incurred a rising tax expense due to its change in tax status from a mutual to a corporate entity (from 11 September).

"The ongoing profitability of SFE will become apparent to external stakeholders during the current financial year ending 31 December 2001. The indicators so far are positive, with robust year-to-date trading volume, including overnight volume - much of which originates offshore -growing to more than 17% of total turnover, and healthy trading in the new $A/$US futures contract, launched in February 2001.

"SFE's initial efforts at applying a commercial focus appropriate for an independent, shareholder-owned corporation appear to have been vindicated in the performance of our share price, which has risen from its $1.72 debut price on the Austock exempt market last November.

"Mindful however, of the desirability from a shareholder perspective of migrating to a more liquid market, SFE intends to complete a listing on the ASX towards the end of the first quarter 2002 once current corporate restructuring plans and 2001 financial year earnings are available."