Soul Patts shares rise on portfolio value growth
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More news: Shares in Washington H Soul Pattinson lifted at market open on the ASX after the investment house reported a boost in portfolio value in the 2024 financial year, but a slide in full-year profit.
Soul Patts shares were up 0.8% to $34.24 by 10:45am AEST.
Soul Patts FY profit weighed by New Hope, Brickworks
The news: Investment group Washington H Soul Pattinson reported a boost in portfolio value as profits declined in the 12 months to July, weighed down by lower contributions from its two largest strategic portfolio investments New Hope and Brickworks.
The numbers: Soul Patts' group statutory NPAT reduced 27.8% year on year to $498.8 million in FY24. Group regular NPAT decreased 35.8% to $487.8 million.
However, net cash flow from investments increased 10.3% to $468 million, driven by increased cash generation from the company's private equity, emerging companies and credit portfolios.
The growth enabled Soul Patts to pay a final dividend of 55 cents per share, bringing the total FY24 dividend to 95 cents, an increase of 9.2% on the previous corresponding period.
Soul Patts' portfolio grew by 8.7% to a new asset value of $11.8 billion, representing a return of 12% in FY24 when adjusted for dividends.
The context: The Sydney-based investment house, which also has holdings in ASX-listed TPG Telecom and Pengana Capital, noted that coal miner New Hope and brick manufacturer Brickworks delivered lower profit contributions in FY24.
In March, Soul Patts flagged that weaker thermal coal prices and lower property contributions were weighing on the two companies' earnings.
However, the company noted that it invested $2.8 billion in "high quality resilient and growing businesses" during the financial year. It said its total transaction activity of $4.7 billion is "indicative of an active investment period that has aligned the portfolio more closely with our long-term strategic and investment objectives".
What they said: "Our strategy of long-term commitment to building value, strength in conviction when making investment decisions, and unconstrained mandate to invest where we can extract the highest quality returns, continues to deliver for our shareholders," said Soul Patts managing director and CEO Todd Barlow.
The source: ASX announcement
