SYDNEY: BKI Investment Company Limited (ASX: BKI) has reported a modest rise in ordinary revenue and dividends for the fiscal year ended 30 June 2025, amid ongoing global uncertainty and market volatility.
The firm posted a 1% year-on-year increase in total ordinary revenue to $69.3 million and declared a fully franked final dividend of 4.00 cents per share, bringing the full-year payout to 7.90 cents, up from 7.85 cents last year.
Net profit after tax, including special investment revenue, fell 4% to $61.9 million, while earnings per share dropped to 7.67 cents, down from 8.03 cents in FY2024. Excluding special investment revenue, the company recorded a net operating result before tax of $66.8 million, a 1% rise from $65.9 million a year earlier.
BKI cited resilient dividend streams from holdings in Commonwealth Bank, Suncorp Group, Dalrymple Bay Infrastructure, Harvey Norman and Telstra among contributors to the portfolio’s performance. However, weaker special investment revenues and softer earnings weighed on the bottom line.
Despite elevated business costs, rising interest rates and geopolitical headwinds, BKI’s portfolio returned 13.4% for the year, compared to the S&P/ASX 300 Accumulation Index’s 15.2%. June’s monthly portfolio performance also outpaced the benchmark, rising 2.4% against the index’s 1.4%. Total shareholder return for the year reached 11.5%.
The company maintained its dividend reinvestment plan (DRP), allowing shareholders to reinvest dividends at no brokerage cost. Shares under the DRP will be purchased on-market to preserve capital neutrality and avoid dilution, with pricing set at the volume-weighted average market price.
During the year, BKI invested $166 million in equities and exited positions worth $154 million, including a full divestment of Nine Entertainment Holdings and Orora. It re-entered Yancoal Australia and added to existing stakes in Dalrymple Bay, Telstra and Amcor PLC. As of 30 June, the portfolio consisted of 39 stocks with the top 25 holdings and cash accounting for 89.5% of total assets. The portfolio’s value was reported at $1.47 billion, with 6.8% held in cash or equivalents.
BKI’s management expense ratio improved slightly to 0.166%, highlighting the firm’s commitment to low-cost investment. The company holds no debt and retains around $110 million in liquid assets.
Looking ahead, BKI emphasized its disciplined investment strategy focused on income generation and capital preservation, amid heightened global inflation and geopolitical risk. The company remains confident in Australian equities and maintains a stable governance structure aligned with long-term shareholder value.