WAM profit soars 85 pc
Listed investment company (LIC), Wam Capital Limited, has reported an operating profit, before tax, of $132.3 million for the financial year ending 30 June 2016, up from $71.2 million in 2015.
It its announcement to the market, it also said their operating profit after tax spiked 81.5 per cent, to $98 million (up from $54 million in 2015).
Record profits were driven by a 21.6 per cent increase in the investment portfolio in the 12 months to 30 June 2016.
Company chairman, Geoff Wilson, said the company also outperformed the S&P/ASX All Ordinaries Accumulation Index by 19.6 per cent for the year, despite the volatile equity market.
The fund generated a return of 21.6 per cent, while they also held 35 per cent in cash.
Wilson Asset Management chief investment officer, Chris Stott, said the WAM team found value in undervalued companies in the vehicle leasing, retail and health care sectors.
WAM noted that their top performing stocks were Smartgroup Corporations, the A2 Milton Company Limited, IPH Limited, Mayne Pharma Group Limited, and Blackmores Limited.
The company also expected to pay a fully franked dividend of 7.25 cents per share, which would bring the full year fully franked dividend to 14.5 cent per shares.
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