ferret's stock to watch: euroz limited

Ferret's Stock to Watch: EUROZ LIMITED
07:43, Wednesday, 12 January 2005

A WA STOCKBROKING FIRM MAKING A NAME IN SMALL-MID CAP STOCKS


Sydney - Wednesday - Janury 12: (RWE)
***********************************

OVERVIEW
********

Sticking to your last or what you do best is paying off for the
WA broking firm Euroz Ltd.

The driving force of Euroz from the late 1990s has been a band of
ex Patterson Ord Minnett dealers who went out on their own and did their
own thing.

The major part of its business centres around 10 to 15 good
quality house stocks which have stood them in good stead over the years.

Yesterday the company announced an operating profit of $6.42
million for the half-year ended December 31.

This represents an increase of 29 per cent over the 2003/04
half-year operating profit of $4.98 million.

The net profit of $4.37 million for the latest half-year is up
30 per cent over the 2003/04 half-year of $3.36 million.

The company will pay a 4.5c fully franked interim dividend,
versus the 4c interim declared in the same period last year.

During the period Euroz received another strong result from its
wholly-owned subsidiary, Euroz Securities Ltd.

This result was driven by strong contributions from all
divisions of Euroz Securities and continued buoyant small to mid-cap
market conditions.

Directors are confident of continued profitability in the second
half, although they note the level of profitability will, as always, be
dependent on market activity.

SHARE PRICE MOVEMENTS
*********************

Shares of Euroz yesterday rose to their high for the year of
$1.90 after adding 10cents. Rolling low for the year was 79c. Dividend is
14c to yield a handy 7.37 per cent.

Last November chairman Mr Peter Diamond told the annual meeting
that during the financial year just ended, Euroz has taken the following
positive steps in strengthening its business platform:

* Further improved the balance sheet with the placement of
shares and exercise of existing options raising approximately $9.3
million.

* Cash resources and investments at market value after tax now
total approximately $25 million. This enables the company to pursue
further growth in our broking business, investing in our own right and
any logical expansion into related financial services.

* The successful recruitment of a number of key staff members to
bolster expertise in core broking activities of Research, Corporate,
retail and institutional dealing which has significantly increased the
company's product distribution capacity.

"In my chairman's Report in 2004 I was cautious as to the
continued strong outlook in the small to mid cap sector of the market and
therefore our potential profitability.

"I am pleased to note that since the July 1, 2004 the market
appetite for our products and services has continued in strength and at
the date of this meeting our four business divisions in Retail Dealing,
Institutional Dealing, Corporate Finance and Investments are all making
profitable contributions.

"Looking forward, our pipeline of corporate mandates and
opportunities again look encouraging for the near future.

"However if would be remiss of me not to caution on the
conservative side that eventually the rate of corporate opportunities and
investment returns that are currently being enjoyed will return to more
realistic levels.

"It is Euroz Limited's aim to maintain a dominant position in the
Western Australian Capital Markets as a specialist financial services
provider.

"We will continue to remain focused on our proven and consistent
business strategy of investing capital and resources in businesses that
leverage our existing strengths.

"The board will continue to investigate opportunities in the
financial services sector that suit this model of logical expansion.

"Most of our staff are shareholders of the company, a philosophy that
the board encourages and that has clearly reaped rewards for all
shareholders now and in the future.

"We look forward to another successful year of growth and
progress for Euroz Limited," Mr Diamond concluded.



BACKGROUND
**********

Euroz Securities provides equities dealing, corporate finance and
research services relating to companies listed on the Australian Stock
Exchange.

Euroz is based in Western Australia and specialises in providing
advice to Australian and international institutional investors on
predominantly Western Australian industrial and resources companies.

Comprehensive retail dealing and advisory services are also
provided

Euroz Securities is a Licensed Securities Dealer and Corporate
Member of the Australian Stock Exchange.

The company is focused on providing quality value added research,
ideas, and dealing services to our clients.

Referring to institutional dealing the company's team of
institutional dealers service major funds management clients in
Australia, Europe and Asia.

On the corporate finance scene, the company provides services for
Australian companies - including capital raisings, mergers and
acquisitions.

Retail advisory and equity dealing services is another part of
the company's activities.

Euroz has a a team of experienced industrial and resource
analysts covering Western Australian and other Australian listed
companies.

ENDS

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I don't hold EZL