Ticks from the market yesterday for the interim results from linked companies, Washington H Soul Pattinson and Brickworks (they own around 42% of each other.
Soul Patts’ statutory profit eased 1.9% to $146.2 million compared to the a year ago when the company benefited from one-off profit gains.
But the investment firm, which holds major interests in companies including TPG Telecom, Australian Pharmaceutical Industries, New Hope, Brickworks and Ruralco, said underlying were up more than 19% to $166.4 million in the six months to January 31.
Soul Patts shares rose 2.5% to $17.94 in a market that couldn’t get out of its own way all day and closed with small losses
Driving the rise in underlying profit, which removes one-off gains or losses, was New Hope Corporation which continued to do well on the recovery in coal prices and the higher contribution from its Bengalla joint venture in the NSW Hunter Valley.
New Hope recorded a net profit of $115.6 million in the six months to January 31, up from $54.9 million in the prior corresponding period.
Soul Pattinson said a lift from the Financial Services Portfolio, and TPG, which it owns about a quarter of, also contributed to the strong underlying performance.
Chairman Rob Millner said TPG’s results were particularly pleasing, given the headwinds created by the introduction of the national broadband network.
“TPG continues to lift profitability by delivering better products to the market and reducing costs," Mr Millner said on Thursday.
He said Soul Patts’ recent investment in Pengana Capital Group was also performing well, with the first result showing solid growth in funds under management as well as strong investment performance.
Revenue was up 25.5% to $549.6 million and interim dividend was lifted one cent to 23 cents a share.
Meanwhile Brickworks Limited reported a statutory net profit of $97 million on revenue of $396.2 million for the January half year.
The profit and revenue were down 6.7% and up 7% on the prior corresponding period but underlying earnings (stripping out one offs) was $115.6 million, up 4% on the first half of 2016-19.
The company will pay an interim dividend of 18 cents per share on underlying earnings of 77.5 cents per share.
Interim dividend was up 1 cent a share on the first half of last financial year.
Brickworks shares closed up 2.8% at $14.91.
