The AFIC (ASX:AFI) share price is up after releasing its unaudited results

The AFIC share price is gaining, despite the company announcing its profits have slipped.

| More on:
An older man leaping into the air with joy in the Australian outback.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australian Foundation Investment Co.Ltd. (ASX: AFI) share price is in the green today after the release of the company's preliminary final results.

The listed investment company reported slightly lower profits for the 2021 financial year. However, it's forging forward with the same dividend it handed out to its shareholders last year.

The AFIC share price is currently $8.15, 0.99% higher than its close on Friday.

Let's take a closer look at AFIC's unaudited full year results.

AFIC's full year financial results

The AFIC share price is being boosted by its preliminary full year results.

Perhaps the most exciting news AFIC shared today was of its fully franked final dividend.

The company will be returning 14 cents per share to its shareholders. AFIC has drawn on its reserves to provide the dividend.

The 14 cents per share will be paid on 31 August. AFIC shares will trade ex-dividend on 11 August.

Over the year ended 30 June 2021, AFIC saw net profits of $235.1 million – down 2.2% from $240.4 million over the prior corresponding period.  

The profits included a $36.5 million demerger dividend which resulted from Endeavour Group Ltd's (ASX: EDV) demerger from Woolworths Group Ltd (ASX: WOW).

AFIC said the fall in profits is a direct result of the economic impact of COVID-19.

The company also brought in $262.8 million in revenue – 0.6% less than it did the year before.

AFIC's net tangible assets per share, before taking the final dividend into account, were $7.45 per share. That's more than the prior corresponding period, within which that figure was $5.96.

AFIC has ended the period with around $97 million in cash and roughly $40 million in receivables.

2021 financial year activities

The AFIC portfolio's strong performance is also likely boosting the share price.

AFIC has announced it performed better than the S&P/ASX 200 Accumulation Index over the last 12 months. The index saw a 29.1% gain, while AFIC saw a return of 31.9%.

The top performers within its portfolio were Reece Ltd (ASX: REH), Mainfreight Limited (NZE: MFT), ARB Corporation Limited (ASX: ARB), James Hardie Industries plc (ASX: JHX) and ALS Ltd (ASX: ALQ).

The investment firm jumped in on PEXA Group Ltd's (ASX: PXA) initial public offering (IPO), which went down on 1 July. It also sold out of South32 Ltd (ASX: S32), Alumina Limited (ASX: AWC), and Brickworks Limited (ASX: BKW).

AFIC share price snapshot

The AFIC share price has been performing well lately.

It has gained 11.64% year to date. It is also 32.7% higher than it was this time last year.

The investment firm has a market capitalisation of around $9.9 billion, with approximately 1.2 billion shares outstanding.

Should you invest $1,000 in Eroad Limited right now?

Before you buy Eroad Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Eroad Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough trading day for ASX stocks this Monday.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Broker Notes

Bell Potter names more of the best ASX 200 stocks to buy in May

These stocks could be best buys this month according to the broker.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

ASX 200 energy shares plunge on shock OPEC move

ASX 200 energy shares like Woodside and Santos are tumbling on Monday. Let’s find out why.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why 4DMedical, Gold Road, Syrah, and Tyro shares are racing higher today

These shares are starting the week strongly. But why?

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

2 ASX gold stocks racing higher in Monday's sinking market

Investors are sending these ASX gold stocks flying higher on Monday. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Brainchip, Helia Group, Reliance Worldwide, and Westpac shares are dropping today

These shares are starting the week in the red. But why?

Read more »

Man looking upwards contemplating which shares to buy
Broker Notes

CSL shares have climbed 10% since 11 April. Is it too late to buy?

What are analysts saying about this biotech giant after its recent rally? Let's find out.

Read more »