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>Press Release from the Chairman of MHL shows growth

34% Rise in turnover by Murchison Holdings Limited

 

In a press release statement by the chairman of Murchison Holdings Limited and Murchison Holdings, Chiang Wee Tiong announced that the groups total turnover has raised by 34%, thanks in part to the first-time contribution from its newly set up sourcing subsidiary, Murchison International Limited (“MHI”).

 

Net Profit attributable to members increased by 92% to A$1.147 million from the previous year. The underlying strength of our business remained strong. This was evidenced by the 195% increase in the commission income contribution of A$992,768 from the stockbrokerage business, a 145% increase in foreign exchange gain of 420,791, and a 132% increase in contribution from other income of A$203,339.

 

Our consistent application of stringent cost controls assisted in reducing our overall operating expenses by a credible 54%. Our borrowing expense fell by over 70%, reflecting a substantially-reduced gearing level. This is particularly satisfactory when one considers the fact that interest rates have been rising throughout the world in the past 12 months. It also made our decision in 2005 of making a large repayment to reduce our borrowing levels very timely indeed.

 

In line with our objective of further strengthening our balance sheet, we have focused on a twin-aim of reducing the Group’s liabilities whilst increasing the contributed equity. For the past year, total liabilities were reduced by nearly a third and total equity rose by 33.32% to A$12,321,107.  

 

A total of 857,085 Murchison 2009 options were converted into equity. We are pleased that nearly 7% of the outstanding options were converted especially when these options still have a 31 month remaining life-span. Current ratio stood at a healthy 2.60 and Return on Capital employed was 10%.

 

Mr. Chiang Wee Tiong says "2006 Financial year marked a start in the execution of our new strategic plan. We are transforming our Company from a traditional investment holding company, owning a major investment in listed company Quest Investments Limited (“QST”), to a more diversified and balanced investment holding company for the future. The rise in Turnover and growth that our company has already shown clearly indicates that the dynamic new direction is the right way to Murchison to pursuse its future."

 

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