Sandon Capital Delivers 72% Profit Surge and 6.3% Fully Franked Yield
Sandon Capital Investments reports a robust 72% increase in net profits, driven by a 32.2% portfolio return that more than doubles market performance, alongside a healthy fully franked dividend yield.
- 72% rise in net profit after tax to $24.65 million
- 32.2% gross portfolio return, outperforming market benchmarks
- 26.9% total shareholder returns over the year
- Quarterly fully franked dividend of 1.4 cents per share declared
- Strong profit reserves and franking balance support future dividends
Robust Financial Performance
Sandon Capital Investments Limited (ASX, SNC) has announced a significant uplift in its financial results for the year ending 30 June 2025, posting a net profit after tax (NPAT) of $24.65 million. This represents a 72% increase compared to the previous year, underpinned by an impressive gross portfolio return of 32.2%, more than double the broader market’s performance as measured by the All Ordinaries Accumulation Index.
Dividend Strength and Shareholder Returns
The company declared a quarterly fully franked dividend of 1.4 cents per share, translating to an annualised yield of 6.3%, or 8.3% when factoring in franking credits. This dividend policy reflects Sandon Capital’s confidence in its cash flow and profit reserves, which currently stand at 42.7 cents per share, alongside a franking balance sufficient to cover over four years of dividends at the current rate.
Total shareholder returns for the period reached 26.9%, highlighting the combined benefit of capital appreciation and dividend income for investors. The dividend reinvestment plan (DRP) remains in place without discount, offering shareholders a flexible way to compound their investment.
Investment Highlights and Portfolio Contributors
Key contributors to the portfolio’s strong performance included Fleetwood Ltd, COG Financial Services Ltd, Wellard Ltd, Carbon Conscious Investments Ltd (unlisted), and BCI Minerals Ltd. These companies demonstrated substantial operational and financial improvements, driving share price gains. Conversely, Coventry Group Ltd was noted as the largest detractor, though its impact was outweighed by the broader portfolio strength.
The investment manager emphasised the importance of patience and a permanent capital base, acknowledging that timing catalysts and market recognition can be unpredictable. This disciplined approach appears to have paid off handsomely over the past year.
Looking Ahead
While full-year results for many portfolio companies remain pending, Sandon Capital remains optimistic about future returns. The company plans to provide updates through monthly reports as relevant information becomes available. The board’s cautious stance on dividend payments, balancing prudence with shareholder reward, will continue to guide capital allocation decisions.
Bottom Line?
Sandon Capital’s strong profit growth and dividend yield set a confident tone, but investors will watch closely for upcoming portfolio updates and market conditions.
Questions in the middle?
- How will Sandon Capital’s portfolio companies perform in their upcoming full-year results?
- Will the board maintain or increase dividend payouts amid evolving market conditions?
- How might the company’s investment strategy adapt to potential market volatility?
