Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Soul Pattinson (SOL) Delivers Again

Today Washington H Soul Pattinson & Company Ltd (ASX: SOL) announced its results for the half-year ended 31 January 2019, reporting its highest regular (underlying) profit after tax of $186.7 million.

Washing H Soul Pattinson & Company (WHSP) is Australia’s second oldest listed company. It began as a chemist shop in Sydney in 1872, with the company listing on the ASX 30 years later.

Since listing, WHSP has paid a dividend every year, including throughout the depression of the 1930s. It is now an investment conglomerate with investments in industries such as telecommunications, building products, mining, equities, pharmaceuticals, property and financial services.

Key results

WHSP reported:

  • Revenue up 32% to $723 million
  • Regular profit after tax up 12% to $187 million
  • Statutory net profit after tax (NPAT) up 23% to $179 million
  • WHSP’s net asset value (pre-tax) up 10.2% to $6 billion
  • Interim dividend of 24 cents per share (cps) fully franked.

The company said two key investments helped drive the returns:

  • New Hope Corporation Ltd (ASX: NHC) up 27.3% on the back of higher coal prices and increased volumes
  • Brickworks Ltd (ASX: BKW) up 73.7% on the back of strong property earnings.

Commentary

WHSP Chairman Robert Milner said, “the WHSP Group continues to improve its performance with another record regular result for the first half”.

Mr Milner pointed out the strength of the group’s portfolio, “during the first half, the value of WHSP’s portfolio increased by 10.2%, outperforming the All Ordinaries by 17%. While the equity markets suffered a correction, WHSP’s portfolio increased which shows the quality of our assets”.

Mr Milner also suggested it was no flash in the pan stating, “over the past 15 years, an investment in WHSP has multiplied in value by six times while the market has increased just two and a half times”.

Finally, after the company lifted its interim dividend for the 21st straight year, Mr Milner pointed out, “the interim dividend has grown to 24c, up from 4c in 1999. This is a compound annual growth rate of 9.4%”.

Future Outlook

WHSP is remaining cautious now with high asset prices, but the “portfolio is well positioned to deliver continued growth while being largely uncorrelated with the rest of the equity market” according to Managing Director, Todd Barlow. He further stated, “WHSP has financial capacity to make new investments and is always looking for opportunities where our long term, patient and disciplined investment approach can deliver outperformance for shareholders”.

[ls_content_block id=”14945″ para=”paragraphs”]

Disclaimer: At the time of writing, Andrew does not own shares in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content