Washington H. Soul Pattinson & Company Limited (ASX: SOL)- NPAT Squeezed But Dividend Climbed Up

  • Sep 20, 2018 AEST
  • Team Kalkine
Washington H. Soul Pattinson & Company Limited (ASX: SOL)- NPAT Squeezed But Dividend Climbed Up

Washington H. Soul Pattinson drifter lower on ASX after the company’s net profit after tax (NPAT) dwindled to $266.8 million for the fiscal year 2018. It represents a decline of 20% on prior year, driven by the headwinds from non-regular losses of $64.3 million which had mainly come from New Hope’s impairment of an undeveloped exploration project in Queensland.

At the year end, the Sydney-based investment house may have little profit left for its shareholders, but it has definitely shown a record breaking improvement in its continuing operations with highest ever regular profit of $331.143 million, reflecting an improvement of 17.4% over the $282.0 million for 2017. The net increase in the regular profit is primarily attributable to considerate increase in investments portfolio including notable contribution from New Hope Corporation Limited up 75%, APEX Healthcare Berhad up 34%, Financial Services Portfolio up 19% and Brickworks Limited up 8%.

The diversified portfolio of investment house includes highest investment of $1,350 million in TPG Telecom followed by $1,326 million in New Hope Corporation, $1,023 million in Brickworks, and under $500 million in Financial services portfolio, API, 100% owned Round Oak Minerals, Apex, and TPI Enterprises.

During the fiscal year 2018, TPG Telecom has contributed $100.0 million to WHSP profit while New Hope corporation Limited and Brickworks Limited contributed $81.5 million and $40.5 million, respectively.  WHSP’s pre tax net asset value has gone up by $972 million or 21.8% to $5,439 million as at 31 July 2018.

The Board of Directors have declared final dividend of 33 cents per share, fully franked, which takes full year FY18 dividend to 56 cents per share. This reflects an increase of 3.7% on the previous year. The company also notified that final dividend will be payable on 10 December 2018 to shareholders on register on 19 November 2018.  

In one-month movement from July to August, the investment company WHSP has witnessed 19.8% improvement in its Net Asset Value (pre-tax) compared to $5,439 million at 31 July 2018. The highest increase has been seen of $675 million in TPG Telecom.

Ahead of lower profit attributable to members, SOL share price plunged 5.38% to $24.280 on 20 September 2018 (2:35 PM AEST). The stock has seen a performance change of +50.94% over the past one year while currently it has been trading at PE of 18.570 x with market capitalization of $6.14 billion.

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