Developer and funds manager Aspen Group has reported a solid rise in interim profit, saying the company’s strategy of re-weighting its portfolio towards Western Australia was proving sound.
Aspen announced a net profit of $13.7 million for the half year to December 31, a 78 per cent increase on the previous corresponding period.
Revenue was up 0.3 per cent, to $38.2 million.
The result includes a $12.4 million write-down in respect to the group’s investment in Aspen Development Fund No 1.
Managing director Gavin Hawkins said the company’s positioning of its portfolio, with 62 per cent of its property assets in WA, had provided a solid platform for growth.
Across the group, 54 per cent of assets are weighted towards the WA economy, MR Hawkins said.
“Demonstration of the benefits of the portfolio weighting, it’s the 7.6 per cent increase in the value of our property portfolio for the six months, largely attributable to the Western Australian assets,” Mr Hawkins said.
“The funds management business provided a solid operating result with management fees increasing 17.3 per cent on the corresponding period in FY11.”
Mr Hawkins said the result also highlighted the success of Aspen’s investment in the expansion of the group’s funds distribution division.
“Growing support of our Aspen Parks Property Fund has delivered inflows for the first half of $18.8 million, an increase of 44 per cent on the corresponding period last year.
“Pleasingly we have seen this growth continue and in fact increase into 2012, with the first two months of inflows achieving circa 50 per cent of the first six months’ inflows.”
At 12:37PM WST, Aspen shares were down 1 per cent, at 50 cents.
