Full Year 2024 Washington H Soul Pattinson and Company Ltd Earnings Call Transcript
Key Points
- Washington H Soul Pattinson & Co Ltd (ASX:SOL) reported a 10.3% increase in net cash flows generated by investments.
- The company declared a fully franked final dividend of $0.55, bringing total dividends for the year to $0.95, up 9.2% from the previous year.
- Net asset value per share increased by 12%, with the total portfolio valued at $11.8 billion, $900 million higher than the previous year.
- The private equity portfolio delivered a 15.9% return, growing by 32.2% due to new investments and valuation uplift.
- The emerging companies portfolio performed strongly, returning 16% and outperforming the Small All Ordinaries Accumulation Index by 6.7%.
- Net profit after tax was $499 million, 28% lower than the previous year, primarily due to lower results from Brickworks and New Hope.
- The strategic portfolio underperformed the All Ordinaries Accumulation Index, returning 11% compared to the index's 13.4%.
- Cash reserves decreased significantly from $911 million at the end of 2023 to $214 million at year-end, leaving the company in a net debt position of $160 million.
- The large caps portfolio saw a 25% decrease in cash generated due to net selling in 2023.
- The company faced challenges with TPG and Aeris, which were the largest detractors to performance due to operational issues and market volatility.
(audio in progress) survey which showed engagement scores 11% higher than the top quartile of finance organizations in Australia.
Thank you to all of the Soul Patts' team and the staff of our many investee companies for their dedicated service throughout the year. Equally, our commitment to communities is important to us. We have had a long-term relationship with the Royal Flying Doctor Service. And this year, with the help of our shareholders, we raised and donated $735,000. Thank you to all the shareholders who donated to this worthy cause.
Turning now to the performance against our strategy. We have three key objectives and performed well against each in FY24. Firstly, we increased cash generation. Net cash flows generated by our investments increased 10.3%. That strong cash generation has enabled the Board to declare a fully franked final dividend of $0.55 which brings total dividends for the year to $0.95 fully franked. That is up 9.2% on the prior year.
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