Washington H Soul Pattinson says net profit more than doubled in fiscal 2011 after the investment firm benefitted from New Hope Corporation's sale of a stake in Arrow Energy.
Net profit rose to $284.91 million for the six months to January 31, 2011, from $123.41 million a year earlier, Sydney-based Washington H said in a statement today.
Profit before non-regular items fell 10.3 per cent to $87.1 million, mainly because New Hope's operating result declined on a stronger Australian dollar, increased transport costs and wet weather.
Washington H holds a 59.7 per cent stake in New Hope, which reported its results on Tuesday.
Washington H chairman Robert Millner said it was a pleasing result.
"The group has a robust balance sheet with cash reserves of $2.24 billion and we do not have any external borrowings from financial institutions," he said in a statement.
"While this puts us in an excellent position to pursue available investment opportunities, the current bevy of proposed taxes by the Federal Labor Government, such as the mining, carbon and flood taxes, is creating uncertainty in the investment market."
Washington H declared an interim dividend of 15 cents per share, fully franked, up from 14 cents a year earlier.
Revenue declined 5.2 per cent to $384.1 million, Washington H said.
Washington H said the value of its listed investment portfolio, including controlled entities and associates, was $4.13 billion at January 31, up from $4.07 billion six months earlier.
Washington H holds stakes in several listed companies, including New Hope, Australian Pharmaceutical Industries, Clover Corporation and TPG Telecom.
The firm has a cross shareholding relationship with Brickworks, in which it holds 44.5 per cent. Brickworks in turn holds a 42.8 per cent stake in Washington H.
AAP
