Brickworks’s biggest shareholder, Washington H. Soul Pattinson (Soul Patts) also failed to reward shareholders other than a token rise in interim dividend yesterday, despite reported a surge in earnings for the six months to January 31.
The company (like Brickworks) is part of the Sydney-based Milner family empire with John Milner chairman of both.
Soul Patts reported a 50% plus jump in interim earnings as key companies in the empire such as New Hope, Brickworks and TPG Telecom paid out higher dividends.
Soul Patts reported earnings of $149 million, up 56.1% on the same period last year.
The group’s underlying profit climbed 66.7% to a record $139.3 million. Soul Patts lifted interim dividend by just one cent a share to 22 cents a share.
Soul Patts has seven major strategic holdings, with three of its largest — coal miner New Hope, telco TPG and manufacturer Brickworks — reporting strong interim profit performances
For the half, contributions from New Hope jumped 264.4% thanks to a combination of the purchase of 40% in the Bengalla coal mine in NSW, and the coal price rally in the latter part of 2016; while regular contributions from TPG and Brickworks were up 24% and 31%, respectively.
The group’s managing director, Todd Barlow, said the group was confident most of its core investments would enjoy more growth through the year as its looks to further its interest in financial services.
On Wednesday the company said it now held a substantial stake in ethical fund manager Hunter Hall International and it will continue to hold a large stake in Hunter Hall after its al paper planned merger with Pengana Capital.
Soul Pattinson announced on Wednesday it had built up a 46.3% stake in Hunter Hall International. It holds 37% in Pengana.
“The earnings growth and performance across the portfolio has been extremely strong over the first half and we expect most of our investments to carry this performance through for the full year,” Mr Barlow said in yesterday’s statement.
“We are always on the lookout for good quality investments at attractive prices which will provide income and capital growth for shareholders over the long term. We have focused on the financial services thematic for some time and have made investments in Pengana Capital, Hunter Hall Global Value and Hunter Hall International in the past six months.”
Mr Barlow said the group is always on the hunt for "good quality investments at attractive prices".
Revenue rose 61% jump to $438 million, despite a slump in the contribution of agribusiness Ruralco. Soul Patts shares jumped 4% to $17.41.
