Whitefield Industrials (ASX:WHF) | Year end results | May 2026

Añadido: 2026-05-22

[00:00:03]Hi, I'm Monica Knight. Today I'm speaking with executive directors [music] Angus Gluskie and Will Seddon about Whitefield Industrials year end results [music] uh for the year ending March 2026.

[00:00:14]Whitefield Industrials has been investing through all cycles of [music] the Australian economy for over 100 years.

[00:00:22]Angus, what can you tell me about operating profit for the year?

[00:00:25]All right, operating profit after tax for the year amounted to $21 million. Uh so that equates to 17.5 [music] cents per share.

[00:00:35]Now those earnings are slightly below our earnings in the prior year. And to explain [music] those movements, it's worth appreciating that in the prior year we did receive a number of special dividends, [music] which weren't repeated in the current year.

[00:00:49]In addition, our strategic positioning saw us with a a slightly lower exposure to high yield stocks [music] and a slightly higher exposure to unfranked dividend payers. So that results in an increase [music] in our tax expense.

[00:01:03]Um more favorably, uh we did see that over 65% of the companies we're invested in >> [music] >> uh increased their dividends over that year.

[00:01:13]Uh and I guess that shows a level of [music] strength uh underlying strength in the Australian economy over that 12-month period. And the next [music] dividend uh has been confirmed for June.

[00:01:24]Will that be at the same level as the prior year?

[00:01:26]>> [music] >> Yes, so the half-year dividend uh is 10.5 cents per share fully [music] franked, which brings total dividends for the full financial year to 21 [music] cents.

[00:01:37]Uh and that's equating to a 6.2% gross yield, so that's inclusive of franking >> [music] >> uh on the current share price.

[00:01:45]Uh turning now to investment returns, [music] uh Will, the total portfolio return for the year was 2.7%.

[00:01:52]>> [music] >> Uh can you talk us through that result?

[00:01:56]Sure. So it's worth bearing in mind that [music] that uh 12-month period started with the market highs [music] right before liberation day back in April 2025 and it finished with the early influences [music] of the Middle Eastern conflict. And it's also worth bearing in mind [music] that despite that quite noisy period over the last 12 months, if we extend across a 3-year period, the average return of the portfolio was just shy of 10% per [music] annum. And the investment return was higher than the ASX 200 Industrials benchmark?

[00:02:30]That's right. [music] Across that 12-month period, the portfolio was 65 basis points ahead of the benchmark >> [music] >> and that means the portfolio is now ahead of benchmark over the 1, 3, [music] 5, and 40-year time periods. And when we factor in franking, returns are higher again? Yeah, that's right. So, if we use the 3-year [music] period as an example, the portfolio performance was 9.8% per annum.

[00:02:55]And then if we calculate that again [music] using the asset backing of the company, which is after all expenses and also including dividends and franking, [music] that outcome comes in at 10.6% per annum. So, it's an extra 80 basis points above the portfolio.

[00:03:14]And the [music] US-Iran conflict has been a dominant concern for markets around the world in recent months. How has that affected your thinking on the outlook?

[00:03:25]Well, conflicts cause uncertainty for markets and in this case, [music] it's added to costs for our consumers and many businesses. And understandably, markets initially sold off in the face of those uncertainties. [music] It is worth bearing in mind though that it is it's in the interests of all parties involved [music] to arrive at some sort of resolution one way or another and ultimately, I think [music] as that occurs, this should be a favorable driver to markets.

[00:03:53]Angus, are you still comfortable with the outlook for the Australian economy?

[00:03:57]Uh well, it's worth remembering that unemployment in Australia remains low at the present time. Construction [music] and infrastructure activity a firm.

[00:04:06]Uh business, health care, and education services all are all in demand. [music] So, while we do appreciate that the uh the Middle Eastern conflict and the impact through rising costs [music] on consumers is out there uh and can be a concern.

[00:04:22]Uh ultimately, these factors do get resolved. [music] Uh it is a time of significant change, uh but the Australian economy is [music] reasonably well positioned uh to deal with that.

[00:04:36]That brings us to the end of the update from all of us here at White Fields.

[00:04:39]Thanks for watching, [music] and we look forward to providing information on future results.

[00:04:44]>> Cool.

[00:04:54]>> [music]