Continued Market Beating Returns and Dividend Growth

Washington H. Soul Pattinson and Company Limited (ASX:SOL), a diversified investment house, has reported its performance for the fiscal year ending July 31, 2023 (FY23). The year was marked by substantial transaction activity and a strategic shift toward private market investments, yielding impressive results.

Strong Financial Performance

• Group Statutory Profit: WHSP reported a profit of AU$690.7 million for FY23, a substantial increase from the prior year due to non-recurring impacts.
• Regular Profit After Tax: The regular profit after tax reached AU$759.3 million, reflecting a 9.0% decrease from the previous year.
• Net Asset Value (pre-tax): WHSP's net asset value grew by 8.8% to reach AU$10.8 billion in FY23.
• Dividends: The company declared a fully franked final dividend of 51 cents per share, continuing a remarkable 23-year track record of increasing dividends. The total ordinary dividends for FY23 amounted to 87 cents per share.

Impressive Portfolio Performance

• Total Portfolio Return: The total portfolio returned 12.3% in FY23, surpassing the All Ordinaries Index by 1.2% in the 12-month period ending July 31, 2023.
• Net Cash Flow From Investments: WHSP experienced a 22.0% increase in net cash flow from investments, reaching AU$424.3 million. Key contributors were the Strategic Investment Portfolio and the Structured Yield Portfolio.

Private Market Investments and Acquisitions

• Private Equity: WHSP allocated AU$547.1 million for additional investments and revaluations during FY23, resulting in a Private Equity Portfolio valued at AU$1.2 billion.
• Structured Yield Portfolio: Investments in private credit and other higher-yielding instruments contributed to a 110.7% increase in net cash flow for the Structured Yield Portfolio.

Outlook

• Strong Financial Position: WHSP enters FY24 with more than AU$500 million in commitments across private market investments and a cash balance of AU$911.0 million, representing an 87.3% increase over the prior year.
• Dividend Growth: The company's board approved a fully franked final dividend of 51 cents per share, an 18.6% increase from the previous year, with a record date of November 20, 2023.
• Growth and Confidence: WHSP continues to grow its portfolio, with a focus on Private Equity and Structured Yield Portfolio investments, while also maintaining a strategic cash position to seize opportunities in a higher-rate, inflationary environment.

Managing Director and CEO, Todd Barlow, expressed confidence in the company's growth trajectory and highlighted the strong start to the new financial year with the portfolio's outperformance. WHSP remains committed to delivering value to its shareholders while actively managing investment risk and generating cash.

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