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WAM profit plummets 88.4%

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. 

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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.

 

WAM profit plummets 88.4%
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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. 

Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.

You can contact her on [email protected].

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