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Chairman’s Review
Dear Shareholders,
I am pleased to present the 2016 Annual Report for Washington H. Soul Pattinson and Company Limited
(WHSP, Parent Company) on behalf of the Board of Directors of the Parent Company.
Consolidated Financial Performance
The profit after tax attributable to shareholders for the year ended 31 July 2016 was $149.4 million, an
increase of 79.3% compared to the $83.3 million for last year.
The regular profit after tax* was $177.2 million, an increase of 9.1% over the $162.4 million** for 2015.
The result was driven by:
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another strong contribution by TPG Telecom Limited (up 38.7%);
4
Brickworks Limited continued to capitalise on the strong building sector (up 33.5%); and
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Australian Pharmaceutical Industries Limited (API) continued its upward trend (up 26.4%).
The results of New Hope Corporation Limited (down 90.4%) continued to be impacted by lower coal and
oil prices.
WHSP’s diversified portfolio of investments continues to provide it with protection against the variability of
results from different sectors of the economy. This year, improved results in telecommunications, building
products and pharmacy have offset lower results from resources.
The net loss from non-regular items was $27.8 million, compared with a loss of $79.1 million last year.
Comparisons with the prior year are as follows:
2016
2015
%
$’000
$’000
Change
Regular profit after tax* attributable to shareholders
177,222
**162,405
+ 9.1%
Profit after tax attributable to shareholders
149,421
83,330
+ 79.3%
Interim Dividend
(paid in May each year)
21 cents
20 cents
+ 5.0%
Final Dividen
d (payable 12 December 2016)
31 cents
30 cents
+ 3.3%
Total Dividends
52 cents
50 cents
+ 4.0%
*
Regular profit after tax is a non-statutory profit measure and represents profit from continuing operations before non-regular items. A reconciliation to statutory
profit is included in the Consolidated Financial Statements – Note 3, Segment information.
** The results for 2015 have been restated by transferring expenses of $6.0 million from the regular result to non-regular items following a reallocation by an
Associated Entity. Refer to Note 3 of the Consolidated Financial Statements.
PROFIT
AFTERTAX
INCREASED
BYOVER
79%