Listed investment company AMCIL Limited (AMH) lifted profit 10% for the year to June, thanks to good performances by its investments in small and medium company stocks.
AMCIL told the ASX yesterday that it earned a $7.7 million net profit for the year to June 30, 2016, on operating income to $10.4 million, up from $8.9 million a year earlier due to strong contributions from investments including Mayne Pharma and TPG Telecom.
AMCIL announced a dividend of 3.5 cents a share, down from the 4 cents a share paid in 2014-15.
It said yesterday that it was well-placed to pursue new opportunities but ongoing volatility in the Australian market would require a “prudent approach”.
The company does not pay an interim dividend.
The company repeated warnings from others in the AFIC group of Listed Investment Companies that the sluggish Australian economy was making gains difficult for large companies facing slow growth, mature markets and tougher competition.
As a result the company had shifted its portfolio to predominantly small and medium companies that were expanding in emerging segments.
AMCIL said it had completely sold off its investment in Santos and reduced its holdings in BHP Billiton, Telstra, Oil Search, Westpac and Commonwealth Bank as it looked to firms with smaller market capitalisation to bolster its earnings. That is similar to the strategy of AFIC (on Monday) and Mirrabooka and Djerriwarrh Investments, the other LIC’s managed by AFIC.
The shares ended on $1, up slightly on the day.
