Mirrabooka Investments Ltd's first-half net profit has declined 36 per cent as the financial crisis dented the value of the assets the fund manager holds.
Net profit for the six months to December 31 fell to $7.39 million compared with $11.57 million for the same period the year before.
But the company was able to increase operating profit, which doesn't take into account the capital losses, to $5.41 million from $4.63 million as Mirrabooka benefited from the interest revenue from cash and bank bills.
Mirrabooka said its asset portfolio declined by 23 per cent over the half year to December, compared with the 37 per cent fall in the small and mid cap stocks in which the Melbourne-based company invests.
The company was able to avoid the full fall-out of the stocks rout by moving into cash and avoiding more speculative shares.
The growth in operating profit allowed the company to maintain its interim dividend at 3.5 cents per share.
Mirrabooka said it would be focused on researching higher yielding fully franked shares and value was emerging.
But the company said it remains cautious until the economic outlook becomes clearer.
Mirrabooka's net assets fell 20 per cent to $183 million from $228 million.
The company said it had sold its holdings in Origin Energy, which entered the top 50, and Queensland Gas, which was taken over by British Gas.
Both companies are in the coal seam gas industry, which has grown in value rapidly in recent months.
Mirrabooka shares rose to a five-week high $1.40 on January 9. They have recovered from a four-year low $1.26 on November 26.
The company's shares were untraded, at $1.40, at 1059 AEDT on Monday.
