MIL records a 25% fall in net profit
Mayberry Investments Limited (MIL) recorded a 25% decline in earnings to $174.5Mn (EPS: $0.15) for the financial year ended December 2010. The company was significantly impacted by foreign exchange losses during the year of $235Mn compared to gains of $268.2Mn in 2009. However, a significant increase in fee and commission income given that the company has been the lead broker for several junior market listings as well as higher trading gains on fixed income securities helped to temper some of the impact. MIL’s cost structure though is cause for concern with a cost to income ratio of 82% - the highest in the brokerage industry. Therefore, in an environment in which there are significant pressures on revenue, the company will need to improve on operational efficiencies to become more competitive within the industry.