Washington H. Soul (ASX:SOL) delivers record FY21 results

Highlights

  • Washington H. Soul (ASX: SOL) has recorded a regular profit after tax worth AU$328.1 million in the FY21 results.
  • SOL’s regular profit after tax rose 93%.
  • The profitable results allowed the Company to declare its highest dividend in 19 years.

The ASX-listed diversified investment house, Washington H. Soul Pattinson and Company Limited (ASX:SOL) announced the results for the year ended 31 July 2021. The Company has reported a regular profit after tax of AU$328.1 million for the period, compared to AU$169.8 million in FY20.

SOL reported Group Profit after tax attributable to members, AU$273.2 million, down 71% compared to the FY20 result. The downfall in the Group Profit after tax was mainly attributable to the FY20 year, including a sizeable one-off accounting gain of AU$1.05 billion due to WHSP derecognising TPG as an associate following its merger with Vodafone. This was treated as a non-regular gain in FY20.

SOL also shared in the announcement that the regular profit excludes one thing. It is considered by the Board to be a better reflection of the underlying performance of significant investments.

SOL’s regular NPAT was up 93% primarily due to the following:

  • Brickworks’ contribution of AU$82 million, showing a 95% increase from improved performance in the Building Products Australia division and a strong result from its Property division.
  • New Hope’s contribution of AU$61 million, up by 45% on FY20, causing a substantial recovery in thermal coal markets.
  • Round Oak Minerals increased its profit contribution by AU$103 million through improved production levels at all operations combined with a strengthening of commodity prices and lower ore treatment charges.
  • SOL’s other investing activities increased their contribution by 87% to AU$129 million as markets recovered from the COVID-19 crisis.

About Washington H. Soul

Washington H. Soul Pattinson and Company Limited is an Australia- based investment house. The Company has investments in diverse portfolios such as natural resources, pharmacies, telecommunication, building materials, etc.

Meanwhile, on the ASX, SOL traded 4% higher at AU$37.060 per share.

Bottom line

The results portray promising future of WHSP. Like any other year, the Company has offered consistent and growing dividends to its shareholders this year.

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