The AFIC (ASX:AFI) share price is up after releasing its unaudited results

The AFIC share price is gaining, despite the company announcing its profits have slipped.
The post The AFIC (ASX:AFI) share price is up after releasing its unaudited results appeared first on The Motley Fool Australia. –

The Australian Foundation Investment Co.Ltd. (ASX: AFI) share price is in the green today after the release of the company’s preliminary final results.

The listed investment company reported slightly lower profits for the 2021 financial year. However, it’s forging forward with the same dividend it handed out to its shareholders last year.

The AFIC share price is currently $8.15, 0.99% higher than its close on Friday.

Let’s take a closer look at AFIC’s unaudited full year results.

AFIC’s full year financial results

The AFIC share price is being boosted by its preliminary full year results.

Perhaps the most exciting news AFIC shared today was of its fully franked final dividend.

The company will be returning 14 cents per share to its shareholders. AFIC has drawn on its reserves to provide the dividend.

The 14 cents per share will be paid on 31 August. AFIC shares will trade ex-dividend on 11 August.

Over the year ended 30 June 2021, AFIC saw net profits of $235.1 million – down 2.2% from $240.4 million over the prior corresponding period.  

The profits included a $36.5 million demerger dividend which resulted from Endeavour Group Ltd‘s (ASX: EDV) demerger from Woolworths Group Ltd (ASX: WOW).

AFIC said the fall in profits is a direct result of the economic impact of COVID-19.

The company also brought in $262.8 million in revenue – 0.6% less than it did the year before.

AFIC’s net tangible assets per share, before taking the final dividend into account, were $7.45 per share. That’s more than the prior corresponding period, within which that figure was $5.96.

AFIC has ended the period with around $97 million in cash and roughly $40 million in receivables.

2021 financial year activities

The AFIC portfolio’s strong performance is also likely boosting the share price.

AFIC has announced it performed better than the S&P/ASX 200 Accumulation Index over the last 12 months. The index saw a 29.1% gain, while AFIC saw a return of 31.9%.

The top performers within its portfolio were Reece Ltd (ASX: REH), Mainfreight Limited (NZE: MFT), ARB Corporation Limited (ASX: ARB), James Hardie Industries plc (ASX: JHX) and ALS Ltd (ASX: ALQ).

The investment firm jumped in on PEXA Group Ltd‘s (ASX: PXA) initial public offering (IPO), which went down on 1 July. It also sold out of South32 Ltd (ASX: S32), Alumina Limited (ASX: AWC), and Brickworks Limited (ASX: BKW).

AFIC share price snapshot

The AFIC share price has been performing well lately.

It has gained 11.64% year to date. It is also 32.7% higher than it was this time last year.

The investment firm has a market capitalisation of around $9.9 billion, with approximately 1.2 billion shares outstanding.

The post The AFIC (ASX:AFI) share price is up after releasing its unaudited results appeared first on The Motley Fool Australia.

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More reading

The AFIC (ASX:AFI) share price just hit an all-time high

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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