Runge unveils $1.5m FY12 windfall

Mining software company Runge (ASX:RUL) will receive nearly $2m from a life insurance policy, and will book at least 75 per cent of the proceeds in FY12

Mining software company Runge Limited (ASX:RUL) has disclosed it expects an insurance windfall to benefit its FY12 earnings by around $1.5 million.

Runge said it had received nearly $2 million from a long-standing life insurance policy it held on managing director, Tony Kinnane.

At least 75 per cent of the proceeds from the payout will be counted in earnings and operating cash flow for the current financial year, Runge said.

Kinnane passed away in July. He had resigned for health reasons in March, after a 20-year tenure as managing director. He had worked with the company for nearly 25 years.

Runge appointed David Meldrum as acting CEO in May, and made the replacement permanent in July.

The company reported a 57 per cent growth in FY11 profit to $3.6 million, a result at the top end of its unaudited estimates.

RUL shares fell 1.15 per cent on Monday to $0.430.

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