Shares in Washington H. Soul Pattinson (ASX: SOL) are likely to gain at the open after the investor booked a 1H FY25 higher profit and dividend.
For the half year ended 31 January 2025, the company posted a statutory net profit of $326.9 million, up 8% on the previous period.
While net profit included the partial selldown of Singapore telco Tuas (ASX: TUA), it was also offset by impairment expenses relating to its shareholding in precious metals producer Aeris Resource (ASX: AIS) 31.4%, and building products manufacturer, Brickworks 42.9% (ASX: BKW).
Against a mixed environment for dividends and earnings across the market, the company delivered a 9.9% increase in net cash flow from investments to $289.5 million.
While net asset value (NAV) growth of 2.6% at $12.1 billion, was below the All Ords Accumulation Index, the company pointed to its defensive portfolio settings and strong balance sheet.
Over the three-year period, NAV generated a 12.8% return.
An interim dividend of 44 cents per share, up 10% on the previous period, will be paid to shareholders on 14 May.
Commenting on today’s results, managing director and CEO, Todd Barlow said the company is well positioned to navigate current market uncertainty with a strong liquidity position and low gearing.
Barlow also reminded investors that since 2000, the company has delivered a total shareholder return (TSR) of 13.0%, outperforming the All Ords Accumulation index by 4.5%.
“Total Shareholder Return (TSR) is one of the most common measures of success over the long term because it offers a definitive view of our ability to generate shareholder value,” said Barlow.
“During 1H25, we managed risk through a combination of portfolio rebalancing and maintaining a strong cash position.”
Other key 1H FY25 numbers include:
- Total transaction activity was $1.9 billion.
- Net cash position increased to $502 million, up 9.9%.
- Cash and liquid income funds are $716 million.
- Group Regular net profit up 18% to $284.8 million.
Washington H. Soul Pattinson has a market cap of $12.3 billion making it the 44th largest stock on the ASX; the share price is down 4.3% over one year and down 2% year to date.
The company’s shares are in a downtrend confirmed by multiple indicators. In the medium-term, the 5-day moving average is below the 50-day moving average.
Consensus does not cover this stock.
The stock closed last night at $33.52; Morningstar’s fair value is $35.23.
The company will host shareholder briefings in Brisbane and Perth in April 2025.
This article does not constitute financial product advice. You should consider independent advice before making financial decisions.
