Cadence Capital posts record FY11 profit

Investment company Cadence Capital (ASX:CDM) has reported a record FY11 profit of $13.1 million, up 357% from FY10.

Announcing its results, the company said its portfolio returned 82%, handily outperforming both the All Ordinaries and Small Ordinaries Accumulation Indexes.

Cadence Capital now has a franking credit balance of $5.2 million - the equivalent of 18.9 cents per share - and net tangible assets amounting to $1.45 per share.

The company recently announced a 1:1 bonus issue of options to existing shareholders, and will pay a 6 cents per share dividend.

Chairman Karl Siegling said these measures are designed to attract new long-term investors, increase the company's market capitalisation and improve its ratings by investment research houses.

Revenue from ordinary activities grew 249% to $15.5 million.

In a letter to shareholders, Siegling said the company is “confident with our portfolio, and remains confident that volatility and extreme valuation levels in the year ahead should provide new investment opportunities.”

CDM shares fell 6.62% on Friday to $1.270.