GOLD Coast based financial services company, Asset Loans Limited, has reported a $1.3 million (before tax) profit and announced a forward workbook which should see the company's profits surge in the 2007 financial year.

CEO, Paul Hare, says while the year's net profit was up slightly on the previous year, the actual profit was significantly affected by the introduction of the Australian equivalent of the International Financial Reporting Standards (AIFRS).

"Any loans that were considered more than one month in arrears were affected by the AIFRS and subsequently an expense of $3.8 million relating to the net present value discount on these loans has resulted," says Mr Hare.

"The introduction of AIFRS across Australia has had a significant impact on all financial institutions' annual results, but we are confident the negative impact in the 2006 financial year will become a very positive impact in this year's results."

Assets Loans Limited has several major projects underway including an unsecured notes prospectus, a land subdivision in Gatton and the redevelopment of the Bowen marina.

"It is what the company has in the pipeline that is not only exciting, but should provide a surge in our annual profits next year and more in the coming years," says Mr Hare.

"We believe that the company is presently undervalued because the market has not factored in the profit potential of the Bowen marina project, estimated at approximately $200 million over the life of the project."

The Bowen marina project is expected to secure long-term growth for the company.

"While we have these profit-orientated projects and other opportunities in place for continued growth, the core of our business has also experienced increases," says Mr Hare.

"The company's loan book grew substantially to almost $31 million at June 30 2006 after raising funds through our first unsecured notes prospectus and other external investors, an increase of 388 per cent since the company listed and 220 per cent during the 2006 financial year.

"The Company also purchased and refurbished office premises in Southport during the year. All excess space has been fully leased and the property has realised a capital growth of $656,817 since it was purchased."

Asset Loans has declared a fully franked final dividend of 0.5 cents per share, bringing the full financial year dividend to a total of 1.75 cents per share, an increase of 75 per cent on the previous year.