BKI full-year revenue, profit drops on softer payouts
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The news: Investment manager BKI has reported lower full-year revenue and profit amid a drop in dividend payouts from its major company holdings.
The numbers: Net profit for the year to 30 June, 2024, fell 8% to $64.39 million, while operating revenue was down 6% to $65.91 million. Its board declared a final dividend of 4 cents a share, taking the full-year dividend to 7.85 cents a share.
The context: BKI said while the Australian equity markets performed well over the year, higher costs and interest rate increases put pressure on company profits, prompting a reduced payout ratio and more conservative dividends in many cases.
As a result, dividends received during the year were softer than expected. BKI, which is focused on generating an increasing income stream for its investors, counts BHP, Yancoal, New Hope, Macquarie Group and Woodside among its major portfolio holdings.
The investment manager expects the trend of lower dividends to continue in the August reporting period.
The source: ASX announcement
