Investment firm Washington H. Soul Pattinson (SOL) (a shareholder in Brickworks, TPG, New Hope, API and a host of other companies. Brickworks is Soul Patts biggest shareholder in turn) saw its profit surge by almost 80% due to a marked reduction in impairments for the full year.
In the 12 months to July 31, Soul Patts reported a 79.3% leap in earnings to $149.4 million.
The more closely-watched statutory profit — which strips out one-off items — rose a more sedate 9.1% to $162.4 million, with the group pointing to strong contributions from its investments in TPG Telecom, Brickworks and Australian Pharmaceutical Industries (API).
“The past year has been a good demonstration of the success of our investment style, highlighting the mix and quality of WHSP’s investments,” WHSP chairman Rob Millner said yesterday.
“Group profit was up 79.3 per cent on the previous year despite a significant reduction in earnings from New Hope due to the low coal price in FY16. This demonstrates the robustness of our diversified investment portfolio which reduces risk and acts to cushion us against the full impact of market volatility.”
But the 2017 financial year has already got off to a rough start, however, with its stake in TPG telecom hit hard as investors fret about the long-term impact of the NBN on the retail broadband sector.
Soul Patts lifted full year dividend to 52 cents a share from 50 cents with the payment of a 31 cents a share final,a rise of 3.3%.
TPG shares ended their big fall yesterday, rising 3.3% to close at $8.92 after falling 25% in the two preceeding days.
Soul Patts shares were steady on $15.72.
