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WASHINGTON H SOUL PATTINSON & COMPANY LIMITED (SOL)

WASHINGTON H SOUL PATTINSON & COMPANY LIMITED (SOL)

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General Information
Company Name: Washington H. Soul Pattinson and Co. Limited
Stock Code: SOL
Website: www.whsp.com.au
GICS Sub-Industry: Multi-Sector Holdings
Market Cap ($M): 3,172
Equiv. Shares (M): 239

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 13.250 $ 13.290 $ 13.290 $ 13.200 $ 13.200 30,278 $ 0.050  0.379 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 10th Apr 2012
12 Month Target Price (average): $16.49
Brokers Surveyed: 1

Company Overview

Business Description:
Washington H. Soul Pattinson and Co. Limited (SOL) is a diversified investor in basic commodities such as building products, coal, equities, telecommunications, financial services and pharmaceuticals in Australia. SOL has three main operations, namely, investment, coal mining and consulting.

Strategy Analysis:
SOL strategy is based on conservative and diversified long-term investment. Through strict adherence to this strategy SOL has delivered well above average total shareholder returns over many decades. Mistakes have been made but the successes have far outweighed the disappointments. Management remains focused on creating long-term shareholder wealth from a sensible and conservative investment strategy. The success of NHC is driving the group at present and adding to cash reserves which will be invested sensibly. Washington H. Soul Pat reported NPAT of $363.87m for the year ended 31 July 2011. Revenue from ordinary activities were $1,325.7m. Basic and Diluted EPS were 152.48 cents compared to nil cents last year. The final dividend declared was 25 cents, taking the full year dividend to 40 cents compared with nil cents last year.


Financial Summary
Year to Jul NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 224.2 93.7 6.6 14.1 47.0 3.5 100.0
2012  F 210.0 87.9 30.1 15.1 45.0 3.4 100.0
2011  A 161.2 67.6 -11.2 18.9 40.0 3.1 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Henderson Group (HGG) $1,051 M -0.1928 0.9004 0.1394 14.9420 7.8626 6.9004 0.0687 0.0744 0.0801
Washington H. Soul Pat (SOL) $3,160 M -0.1121 0.3008 0.0658 19.5411 15.0222 14.0950 0.0303 0.0341 0.0356

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
SOL 0.94 15.7 1.12 0.89 5.17
Market 0.80 12.1 1.33 1.35 1.68
Sector 0.94 12.3 0.82 3.30 6.55

Directors
Name Position Start Date
Mr Peter Raymond Robinson Chief Executive Officer 11 January 1984
Mr Robert Dobson Millner Non-Executive Chairman 11 January 1984
Mr Michael John Millner Non-Executive Deputy Chairman 23 July 1997
Mr David John Fairfull Non-Executive Director 14 August 1997
Mr David Wills Non-Executive Director 01 April 2006
Mr Robert Westphal Non-Executive Director 01 April 2006
Mr Thomas Charles Dobson Millner Non-Executive Director 01 January 2011

Management
Name Position
M R Roderick Chief Financial Officer
Ian David Bloodworth Company Secretary

Substantial Shareholders
Holding Name
29,318,700 (12.29%) Perpetual Limited and subsidiaries
102,257,830 (42.85%) Brickworks Ltd

Calendar of Events
Date Event
21 March 2013 Report (Interim)
30 October 2012 Report (Annual)
23 October 2012 Report (Annual)
20 September 2012 Report (Prelim)
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