Profit dive takes big toll on Soul

SHARES in Soul Pattinson fell more than six per cent after the investment firm reported a 20 per cent drop in its full-year net profit.

Profit for the year to July 31 was $266.8 million, down from a $333.1 million FY17 figure, while impairments to coal miner New Hope, which it has a 50 per cent stake in, also impacted the FY18 result.

The investment firm, which also holds major interests in TPG Telecom, Brickworks, Australian Pharmaceutical Industries and Apex Healthcare, says its underlying profit was up 17.4 per cent to a record $331 million. It said this figure was boosted by one-off gains in FY17, mainly driven by New Hope, which benefited from higher coal prices and its Bengalla joint venture.

Managing director Todd Barlow said the pending merger between TPG and Vodafone Australia has added more value to its portfolio since the end of the financial year.

Shares closed down 6.3 per cent at $24.04.