AFI’s Revenue From Operating Activities Grew By 62.5% For The Half Year Ended 31-Dec 2018

  • Jan 21, 2019 AEDT
  • Team Kalkine
AFI’s Revenue From Operating Activities Grew By 62.5% For The Half Year Ended 31-Dec 2018

Australian Foundation Investment Company Limited (ASX: AFI) is a closed-end investment company. It focusses on investing in Australian companies which have unique, high-quality assets. The company provides the investors with a decent stream of franked dividends.

Today (i.e., 21 January 2019), the company has announced its results for the half-year ended 31-Dec 2018, which have been reviewed by the auditors. The revenue from operating activities was reported to be $250.3 million for the half year ended 31-Dec 2018, an increase of $96.3 million or 62.5% from the previous corresponding period. This excludes capital gains on investments. The increase was primarily driven by a demerger dividend received because of the Coles demerger from Wesfarmers and participation in the Rio Tinto and BHP off-market buy-backs.

The profit after tax (PAT) for the company stood at $239.8 million for the half year ended 31-December 2018, an increase of 75.4% on the previous corresponding period’s number of $136.7 million, however the PAT attributable to the members were $239.4 million compared to $136.4 in its previous corresponding period, which is an increase of 75.5%. The interim dividend amounts to 10 cents per share, fully franked, the same as last year. Additionally, the company declared a special dividend of 8 cents to distribute the proceeds of its participation in the Rio Tinto and BHP off-market buy-backs.

The company also provided information on the Dividend Reinvestment Plan (DRP) and Dividend Substitution Share Plan (DSSP). The price for these will be set at a 2.5% discount to the Volume Weighted Average Price of the Company’s shares traded on the Australian stock exchange, and Chi-X automated trading systems over the five trading days from when the shares trade ex-dividend. The last date for the receipt of an election notice for participation in the DRP & DSSP is 12 February 2019 at 5.00pm.

Net tangible assets per share before provision for deferred tax on the unrealized gains on the long-term investment portfolio as at 31 December 2018 were $5.69, decreased from $6.15 at the end of the previous corresponding period.

The company invests in a diversified portfolio of Australian equities, seeking to provide attractive income and capital growth over the medium to long term at a low cost. The significant correction in the market has produced a more favourable environment for long-term investment. Valuations have moved towards longer-term averages, which make for a sensible starting point to invest. The volatility is likely to persist at least in the short term as the market is experiencing a changing environment, with interest rates likely to increase further in the US and no short-term solutions to trade and geopolitical dislocations. AFIC will continue to look for opportunities to add positions in companies that have a sustainable competitive advantage, sound balance sheets and, importantly, strong management that can deliver long term benefits to shareholders.

The stock is currently trading at a price of $6.180 with a price increase of 0.98% during the day’s trade. It has a yielded a YTD return of 0.99% and had a market capitalization of $7.3 billion. It has a 52-week high price of $6.440 and a 52-week low of $5.820, with an average volume of 304,816 approximately.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK