Soul Pattinson (SOL) also reported yesterday and revealed a net profit of $73.7 million for the six months to January 31, down slightly from $74.3 million in the same period a year earlier.
Shareholder activist Mark Carnegie and Perpetual Investments have been seeking to end the cross ownership structure between Soul Pattinson and Brickworks, and a meeting related to the proposal has been delayed several times. It is currently scheduled for May 5.
Brickworks said the ongoing fight over the issue cost it $1.8 million in costs in the six months to the end of January. "Of greater concern is the major distraction to management and staff, the full impact of which is difficult to quantify," it said in yesterday’s report.
The lower profit was due the fall in earnings reported earlier in the week by the associate company, New Hope.
That was partly offset by higher earnings from TPG Telecom and Brickworks which resulted in the net profit falling to $63.5 million 21.1% from $80.5 million in the six months to January.
SOL 1Y – New Hope Weighs On Soul Patts
The regular after tax profit figure removes the impact of deferred tax expenses incurred on movements in the carrying value of equity accounted associates.
The investment group´s revenue from continuing operations was $335.78 million, a decline from the $384.32million recorded in the previous corresponding period.
Chairman Robert Milner said he has noted a steady increase in the market value of the group´s listed equity investments, which it takes as a positive sign that investors are returning to the market. "We maintain our focus on diversification as it continues to deliver long-term returns to our shareholders," he said.
Despite the earnings and revenue slide, directors raised the interim dividend to 19c from 18c, on earnings a share of 30.8c compared with 31c earned a year earlier.
Soul Patts shares fell 6c to $15.04 yesterday.
