Mirrabooka Investments Limited (MIR) said the value of its portfolio had declined by 23% over the half year to 31 December. The company also reported profit for the half-year of $7.4 million, down 35.6% on the previous corresponding period.

The investment company said that despite the decline in its portfolio, the 23% figure was still less than the 37% decline experienced in the small and mid cap sector in which it invests.

Mirrabooka attributed this outperformance to its strategy of being less exposed to speculative stocks and holding a high level of cash.

Net operating profit before net gains on investments was up 16.8% at $5.4 million.

Revenue from operating activities (excluding capital gains on investments) was $6.1 million, up 13.2% from the prior corresponding period.

The company said it had not yet used the total proceeds form the sale of its stake in Origin Energy Limited (ORG) and Queensland Gas Company Limited (QGC).

"Mirrabooka has been patient in reinvesting the proceeds but has bought modest parcels in Alumina Limited (AWC), Australian Agricultural Company Limited (AAC), Crane Group Limited (CRG), Gunns Limited (GNS) and OneSteel Limited (OST) in market weakness," the company said.

"Value is emerging and Mirrabooka will be focussing its research on higher yielding fully franked shares but remains cautious until the economic outlook becomes clearer."

Mirrabooka's board declared an interim fully franked dividend of 3.5c per share, unchanged from last year.

At 1148 AEDT, shares in Mirrabooka were untraded at $1.40.