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Wilson Asset Management Achieves Record Profits of $103 Million

Wilson Asset Management Achieves Record Profits of $103 Million
Feb 01, 2016 By Ben Khouri Tags: WAM

Wilson Asset Management Capital Ltd (ASX:WAM), released their half yearly financial reports. Outlining a rather positive first half to the FY16, for the investment management firm.

Operating Profit up Over 248%

For the 6 months ending 31st December 2015, Wilson achieved a record operating profit before tax of $103 million. When compared to the PCP in 2014, this is 248.5% increase. In similar fashion, Wilson’s operating profit after tax was $74.6 million. Moreover, this was a 224.9% increase, when compared to the PCP in 2014.

Chairman Geoff Wilson said the company had delivered a strong performance, despite the global volatility and the challenging year in the ASX.

Portfolio Return Rising Over 25%

Wilson’s portfolio return rose 25.8% for 2015. Outperforming the S&P/ASX All Ordinaries Accumulation Index by 21.8%. Furthermore, for the 6 months ending 31st December 2015, Wilson’s portfolio return expanded by 16.5%, despite the S&P/ASX All Ordinaries Accumulation Index only rising 6.4%.

The portfolio’s top performing equities for the period were as follows: Smartgroup Corporation Ltd (ASX:SIQ), The A2 Milk Company (ASX:A2M), Blackmores Ltd (ASX:BKL), IPH Limited (ASX:IPH) and SG Fleet Group Ltd (ASX:SGF).

CEO Kate Thorley said the result followed the historical trend of performance: “The Investment portfolio has returned 18.3% per annum since its inception in 1999, outperforming the market by 10.3% per annum. This strong return over the long term has been achieved with an average cash weighting of 34% since its inception.”

Interim Dividend Rising by 3.6%

The board has announced a fully franked interim dividend of 7.25 cents per share, an increase of 3.6% to the PCP. The dividend will be paid on the 13th May 2016, with the ex-dividend date on the 27th April 2016. Dividends are paid on a 6 monthly basis.

The Dividend Reinvestment Plan (DRP) is available to shareholders for the interim dividend. It will operate at a 2.5% discount. The last election date for the DRP will be the 2nd May 2016.

According to the board, Wilson is committed to paying a consistent and increasing flow of fully franked dividends to shareholders, provided the company has sufficient profit reserves, franking credits, and it is within their business practices.

Share Performance

Investors have reacted rather positively to the announcement, with WAM up more than 4% (as at 10.11am AEDT), to $2.25. For the year 2016, WAM has had a moderate return of around 7%. 

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Ben Khouri Author: Ben Khouri Feb 01, 2016

Ben Khouri is a financial editor for Wise-Owl with a particular focus on the top ASX 300 companies. Having a vast background in economics and finance, Ben provides financial commentary & analysis as well as global market updates, which guide investors in devising investment strategies. Ben specialises in analysing economic data and global events from around the world and examines the impacts they have on the major equity markets.

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