TFS Corp jumps on profit hike

UPDATE 2.40pm: Shares in TFS Corporation leapt after the sandalwood plantation manager posted a 115 per cent surge in full-year profit to $55.7 million and reinstated a dividend of three cents a share fully franked.

Total revenue from ordinary activities increased 48 per cent to $187.7 million.

Chief executive Frank Wilson said it had been a year of significant achievement for TFS as the company worked toward the first harvest of Indian sandalwood from its Kimberley plantations early next month.

"Sharp price rises for sandalwood combined with improving yields in subsequent harvests underpin our confidence that shareholders and investors can look to the future with increasing confidence," he said.

The company also announced the appointment of a new non-executive chairman in Perilya deputy chairman Patrick O'Connor to take over from Mr Wilson.

TFS has about 7600 hectares of Indian Sandalwood trees, which it manages on behalf of retail and institutional investors.

TFS shares closed up 11 cents, or 23.4 per cent, at 58 cents.