Soul Patts posts 8% rise in HY profit, hikes dividend
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The news: Investment group Washington H Soul Pattinson reported an 8% rise in first-half net profit to $326.9 million, and increased its interim dividend, boosted by the partial sell down of Singapore telco Tuas.
The numbers: Soul Patts declared an interim dividend of 44 cents per share, up 10% compared to a year ago.
Revenue from continuing operations rose 27% year on year to $492.7 million, while net cash flow from investments grew 10% to $289.5 million.
The context: The investment house, which holds stakes in ASX-listed companies ranging from coal miners to banks, said its listed investments lagged the overall market. This was driven by Soul Patts' underweight position in Australian retail banks, exposure to energy, and soft share price performance in TPG Telecom and building materials supplier Brickworks.
However, the company said its strategic portfolio continues to be a strong contributor of cash, while its large caps portfolio remains a source of tax-efficient growth and liquidity.
It noted that its profit line was supported by a one-off gain from the partial sell down of Tuas, offset by some impairment expenses in Brickworks and metal producer Aeris.
Soul Patts noted that it is "well positioned to navigate current market uncertainty with our strong liquidity position and low gearing".
