Supply Network Limited has forecast a solid half-year profit of $22.9 million alongside a fully franked interim dividend of 36 cents per share, signalling steady performance in its supply chain operations.
- Half-year sales revenue forecast at $200 million
- Profit after tax expected around $22.9 million
- Fully franked interim dividend of 36.0 cents per share declared
- Dividend record date set for 19 March 2026
- Dividend reinvestment plan not operating for this interim dividend
Solid Half-Year Performance Forecast
Supply Network Limited has provided an earnings forecast for the half-year ending 31 December 2025, based on unaudited management accounts. The company expects consolidated sales revenue to reach $200 million, with profit after income tax (PAT) estimated at approximately $22.9 million. This forecast suggests a steady operational performance in the industrial supply chain sector, reflecting ongoing demand and effective cost management.
Dividend Declaration Signals Confidence
In conjunction with the earnings forecast, the board has declared a fully franked interim dividend of 36.0 cents per share. The record date for this dividend is 19 March 2026, with payment scheduled for 2 April 2026. The fully franked nature of the dividend indicates that shareholders will receive the benefit of tax credits, enhancing the appeal of the payout. Notably, the company has confirmed that its Dividend Reinvestment Plan (DRP) will not operate for this interim dividend, meaning shareholders will receive cash payments rather than reinvestment options.
Looking Ahead to Final Results
The final half-year results are expected to be released in late February 2026, providing audited confirmation of these preliminary figures. Investors will be watching closely to see if the company can maintain or improve upon this forecast, especially given the broader economic uncertainties that can impact supply chain services. The interim dividend declaration ahead of the final results suggests the board’s confidence in the company’s financial health and cash flow generation.
Context Within the Sector
Supply Network operates within the industrial supply chain services sector, an area that has faced challenges from fluctuating demand and logistical disruptions in recent years. This forecasted performance, therefore, may reflect a stabilisation or modest growth phase. The absence of any mention of major contracts or cost changes in the announcement points to a steady state rather than transformational shifts.
Investor Implications
For investors, the combination of a solid profit forecast and a generous fully franked dividend is likely to be reassuring. However, the lack of a DRP option may influence some shareholders’ decisions, particularly those who prefer to compound their holdings. The upcoming final results will be critical in confirming the company’s trajectory and informing market sentiment.
Bottom Line?
Supply Network’s steady forecast and dividend set the stage for a closely watched final result in February.
Questions in the middle?
- Will the final audited results confirm or exceed the current profit forecast?
- What factors influenced the decision not to operate the Dividend Reinvestment Plan this interim period?
- How might broader supply chain trends impact Supply Network’s performance in the second half of the fiscal year?