Powered by MOMENTUM MEDIA

WAM profit plummets 88.4%

 — 1 minute read

Wilson Asset Management Capital has reported an operating profit after tax of $14.5 million in the 2019 financial year, plunging by 88.4 per cent from the year before. 

The after-tax figure was boosted by $8.5 million from its profit before tax of $6 million, accounting for franking credits received on franked dividend income from investee companies.

WAM Capital saw its revenue from ordinary activities sink by 86.3 per cent to $25.7 million. 

Advertisement
Advertisement

Management fees revenue generated a loss of $13.6 million, while other revenue accounted for $44.1 million.

The investment manager said its full-year profit reflected the performance of its investment portfolio during “heightened volatility in the Australian equity market”.

“We remain cautious about the direction of the Australian market, as the record-low interest rates have driven up valuations and increased speculation,” WAM chairman Geoff Wilson said.

WAM Capital had an unrealised loss of $18.3 million from its financial investments. 

The company’s net tangible assets before tax slipped by 1.3 per cent in the year to $1.84.

The board declared fully franked final dividend of 7.75 cents. 

WAM Capital now has 80,000 shareholders across its six listed investment companies.

 

 

Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now. 

WAM profit plummets 88.4%
investordaily image
ID logo
Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].

 

related articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.