ABN 33 006 713 177
APPENDIX 4D STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2016CONTENTS
Results for announcement to the market
Letter to Australian Securities Exchange
Financial Statements
Independent Audit Report
Appendix 4D: Results for Announcement to the Market Diversified United Investment Limited 31.12.2016
RESULTS FOR ANNOUNCEMENT TO THE MARKETThe reporting period is the half year ended 31 December 2016 with the prior corresponding period being the half year ended 31 December 2015.
Results for announcement to the market
Revenue from ordinary activities was $19.5 million, up 1.2% from the prior corresponding period.
Profit after tax and before net realised and unrealised gains and losses on the investment portfolio was $16.4 million, up 0.4% from the prior corresponding period. Net realised gains and losses are recorded in the Asset Realisation Reserve.
In the latest period special dividends of $1,740,000 were received (prior corresponding period
$106,000).
Excluding special dividends received revenue fell 7.3%* and profit after tax fell 9.7%*.
Earnings per share based on profit after tax were 7.9 cents, unchanged from the prior corresponding period. Excluding special dividends received, earnings per share fell 10%* to 7.0 cents per share. The weighted average number of ordinary shares for the period rose 0.6% to 207,870,602, after taking into account the shares issued in the dividend re-investment plan.
The interim dividend is 6.5 cents per share (6.5 cents for the prior corresponding period) fully franked payable on 15 March 2017. The record date for determining entitlement to the interim dividend is 24 February 2017.
The interim dividend will not include any Listed Investment Company capital gain dividend.
The Company operates a Dividend Reinvestment Plan ("DRP") under which shareholders may elect to have all or part of their dividend payment reinvested in new ordinary shares. Pricing of the new DRP shares will be at the volume weighted average selling price of shares traded on the Australian Securities Exchange on the Dividend ex date of 23 February 2017 and the following four business days, without any discount. The last day for receipt of an election notice for participation in the plan is 27 February 2017.
The net tangible asset backing per share based on the market valuation of investments was
$3.82 at 31 December 2016, compared to $3.59 at the end of the prior corresponding period a rise of 6.4%. These calculations are after tax on net realised gains, before any future tax benefit of net realised losses, before estimated tax on net unrealised gains/losses, and before provision for the interim dividend.
* Additional non IFRS information, not subject to external review.
1
DIVERSIFIEDUNITEDINVESTMENTLIMITED
ABN 33 006 713 177
LEVEL20 TEL(613) 9654 0499
101 COLLINSSTREETFAX(613) 9654 3499
MELBOURNEVIC3000
AUSTRALIA
14 February 2017 The General Manager
Australian Securities Exchange Ltd 10thFloor
20 Bond Street
Sydney NSW 2000
Dear Sir,
Financial Results and Dividend Announcement for the Financial Half Year Ended 31 December 2016
The Directors make the following report concerning the company's performance and interim dividend:-
Profit and Realised Capital Gains
Profit after income tax for the half year ended 31 December 2016 was $16,366,000 (prior corresponding period: $16,301,000) a rise of 0.4%, or a fall of 8.2%* if special dividends received of $1,740,000 after tax (prior corresponding period: $106,000) are excluded. The fall in profit reflects a 7.3% decline in revenue, excluding special dividends, which is principally due to a reduction in dividends received from the oil and gas, mining and retail sectors, and the ANZ Bank; and also reflects higher borrowing costs from additional borrowings.
The profit for the half year excludes net realised gains and losses which are transferred directly to the Asset Realisation Reserve. The net realised gains on the investment portfolio after tax for the half year were
$2,395,000 (prior corresponding period: $3,456,000).
Operating expenses (excluding interest) for the half year were .06% of the average market value of the portfolio (previously .06%).
Earnings Per Share
Earnings per share excluding the special dividends received fell 10% to 7.0* cents per share, or remained steady at 7.9 cents per share including the special dividends received.
The weighted average number of ordinary shares for the period was 207,870,602 (prior corresponding period: 206,623,492) taking into account the shares issued in the dividend re-investment plan.
* Additional non IFRS information, not subject to external review.
- 2 -
Dividends
The Directors have declared an interim dividend of 6.5 cents per share fully franked to shareholders registered on 24 February 2017, to be paid on 15 March 2017. The comparable 2015 interim dividend was 6.5 cents per share fully franked.
LIC Capital Gains
The interim dividend will not include any Listed Investment Company capital gain dividend.
Dividend Reinvestment Plan
The Company operates a Dividend Reinvestment Plan ("DRP") under which shareholders may elect to have all or part of their dividend payment reinvested in new ordinary shares. Pricing of the new DRP shares will be at the volume weighted average selling price of shares traded on the Australian Securities Exchange on the Dividend ex date of 23 February 2017 and the four business days immediately following that date. The last day for the receipt of an election notice for participation in the plan is 27 February 2017.
Asset Backing
The net tangible asset backing per share based on the market valuation of investments was $3.82 at 31 December 2016 and $3.81 at 31 January 2017. These calculations are after tax on net realised gains, but before any future tax benefit of net realised losses and before estimated tax on net unrealised gains and losses. They are also before provision for the interim dividend.
The Company is a long term investor and does not intend disposing of its total portfolio. If estimated tax on net unrealised gains were to be deducted, the above figures would be $3.35 at 31 December 2016 and $3.34 at 31 January 2017.
Performance
The Company's net asset backing accumulation performance (assuming all dividends paid by the Company were reinvested in its shares, and after all expenses and tax) for the half year to 31 December 2016 was a rise of 10.5% while the S&P/ASX 200 accumulation index rose 10.6% over the same period. The Company's accumulation performance is after tax, all expenses, and the impact of the Company's gearing. Such items are not included in the S&P/ASX Index.
Diversified United Investment Limited published this content on 14 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 March 2017 08:20:19 UTC.
Original documenthttp://www.dui.com.au/resources/31%20December%202016%20-%20Final%20Docs%20-%20DUI/DUI%20Appendix%204D%20Announcement%20to%20ASX%2031.12.2016.pdf
Public permalinkhttp://www.publicnow.com/view/D3BF05D61110B6479DE797B0437252D9E798567E