Argo Investments boosts H2 guidance

Company News

Argo Investments Ltd (ASX:ARG) has boosted its profit guidance, flagging a 15 per increase in net profit for the half year ending on 31 December 2010.

The investment company says the upgrade is due to dividends received when DuluxGroup Ltd (ASX:DLX) demerged from Orica Ltd (ASX:ORI) and from the recent Woolworths Ltd (ASX:WOW) share buy-back.

In addition Milton Corporation Ltd (ASX:MLT) and Choiseul Investments Ltd (ASX:CHO), in which Argo is a shareholder, have proposed a merger and if approved the dividends will be included in the results for the second half of this year.

If the merger goes ahead Agro says its operating profit after tax for the period, excluding realised gains or losses on long-term investments, could be rise by up to 20 per cent over the same time last year.

Argo Investments moved into the black in fiscal 2010 to post a net profit of $153.89 million.