Melbourne-based listed investment company, Djerriwarrh Investments (DJW) saw a 14.7% slide in net earnings for the 2012-13 financial year, a result that echoed the performance of its stablemate, Mirrabooka, which reported its profit last week.
And it is likely to be a similar performance at their bigger stablemate, Australian Foundation Investment Co which is due to report its 2012-13 profit early next week.
The company said earnings were $37.7 million, down from $44.1 million over the corresponding period last year.
Djerriwarrh’s net operating result – a more accurate measure of the company’s continuing investment, trading and option income – was down 7.5% to $35.1 million, compared with $37.9 million from this time last year.
The fund’s portfolio return was 19% compared to the ASX 200 Accumulation Index’s return of 22.8%.
The company concentrates its investments on the top 50 companies and directors said yesterday that the "generally strong rise in the market over the year produced a number of call option exercises in the major banks and other high yielding stocks."
"This outcome along with the sale of Hastings Diversified Utilities Fund and Australian Infrastructure Fund meant a fall in Djerriwarrh’s dividend income for the year. However these sales have produced significant realised gains and franking credits."
A final dividend of 16 cents per share fully franked, the same as last year, will be paid on August 23. The company said that 10 cents of the final dividend is sourced from capital gains, on which the Company has paid or will pay tax.
"The amount of the pre-tax attributable gain, known as an “LIC capital gain”, is therefore 14.3 cents. This enables some shareholders to claim a tax deduction in their tax return. Further details will be on the dividend statements."
Mirrabooka paid a special dividend on the same basis, as well as a final.
The company paid an interim dividend of 10c a share earlier in the year.
Larger purchases during the year included shares in Commonwealth Bank, Westpac, ANZ and National Australia Bank which, were in part the replacement of holdings sold through option exercises.
"New companies added to the portfolio included Suncorp and APA Group (as a result of its takeover of Hastings Diversified Utilities Fund)," directors added.
