The stock market bounce has lifted Euroz-managed Westoz Investment back into the black, the group yesterday disclosing a $19.1 million net profit for the December half.
The recovery reflected improved share values which fuelled an 18.2 per cent rise in the value of Westoz's investment portfolio to $192.8 million, bettering the All Ordinaries Accumulation Index's 15. 8 per cent gain over the six months.
Cash now accounts for about 17 per cent of the portfolio, or $31.5 million, with Westoz executive director Phil Rees saying yesterday the listed investment company had "taken a little bit out on the way up", bolstering a war chest to take advantage of buying opportunities.
Its biggest positions are in iiNet and Automotive Holdings Group, which each represent about 12 per cent of the portfolio, ahead of Aurora Oil & Gas (8 per cent), NRW Holdings and Regis Resources (7 per cent each).
Mr Rees said the WA-focused Westoz had awaited with interest this year's reporting season, which occurs against the backdrop of an uncertain economic environment. "It will give us a good idea how the companies are going, particularly the contractors. That's an active space at the moment," he said.
The Westoz results included payment of a $943,612 management fee to the Euroz-owned manager, Westoz Funds Management. They also provided for payment of a $2.8 million performance fee at June 30, reflecting Westoz's better-than-hurdle rate return.
Westoz will pay a fully franked interim dividend of 3Â¢ a share.The company's shares rose half a cent to $1.165, still below Westoz's net tangible asset backing of $1.37 a share at the end of December.