Soul Pattinson lifts profit, dividend

Investment firm maintains its 15-year run of increased dividend payouts, despite coal price pain.

Robert Millner, Executive Chairman of mini-conglomerate Washington H. Soul Pattinson and Brickworks on the economy and results.

Investment firm Washington H. Soul Pattinson has lifted its half-year earnings and dividend, despite weakness in coal prices weighing on its New Hope earnings.

In the six months to January 31, Soul Pattinson (SOL) saw net profit lift 42 per cent to $95.4 million.

The company will pay an interim dividend of 21c, fully franked, up 1c or 5 per cent.

Ordinary dividends and interest received net of regular costs — which is used when the firm calculates dividends — rose 25 per cent to $71.1m.

WHSP chairman Robert Millner said the company was one of only two in the All Ordinaries index which had increased dividends each year over the last 15 years, adding that total shareholder returns topped the All Ordinaries Accumulation Index by 39 per cent in the last 12 months.

Managing director Todd Barlow said the result was boosted by “strong earnings growth” -- more than 30 per cent — from each of TPG Telecom, Brickworks and Australian Pharmaceutical Industies, which had offset its New Hope stake, which was weighed down by a “weak coal price environment”.

He said the group boasted a “strong” balance sheet and cash flows.

“In these volatile markets, we will continue to look for reasonably priced companies operating in industries with strong long term growth,” Mr Barlow said.

The group’s dividend will be payable on May 12 to shareholders on the register at April 21.