Perpetual Equity Investment : Condensed Interim Financial Report

For personal use only

All Registry communications to: C/- Link Market Services Limited Locked Bag A14 Sydney South NSW 1235

Telephone: [phone]

23 February 2022Facsimile: [phone] ASX Code: PIC

Email: [e-mail] Website: www.linkmarketservices.com.au

ASX Limited

ASX Market Announcements Office

Exchange Centre

20 Bridge Street

SYDNEY NSW 2000

Via electronic lodgement

PIC Half Year Financial Results

Please find attached the following announcements for release to the market:

Appendix 4D

• Condensed Interim Financial Report 1H22 Results Summary and Highlights

This release has been authorised by the Board of Directors of Perpetual Equity Investment Company Limited.

Yours faithfully

Sylvie Dimarco

Company Secretary

PERPETUAL EQUITY

onlyINVESTMENT COMPANY

LIMITED ACN 601 406 419

useCondensed Interim Financial Report

For the half-year ended 31 December 2021 personalFor

Perpetual Equity Investment Company Limited

ACN 601 406 419

only	Condensed Interim Financial Report
for the half-year ended 31 December 2021
use	Contents
	Directors' report
personalFor	Lead auditor's independence declaration
Condensed interim statement of profit or loss and other comprehensive income
Condensed interim statement of financial position
	Condensed interim statement of changes in equity
	Condensed interim statement of cash flows
	Notes to the condensed interim financial statements
	Directors' declaration
	Independent auditor's review report to the shareholders of Perpetual Equity Investment Company Limited

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Perpetual Equity Investment Company Limited Directors' report For the half-year ended 31 December 2021

For personal use only

Directors' report

The Directors present their report together with the condensed interim financial report of Perpetual Equity Investment Company Limited (the Company) for the half-year ended 31 December 2021 and the auditor's report thereon.

Directors

The following persons were Directors of the Company during the half-year and up to the date of this report:

Current Directors	Position	Appointment date
Nancy Fox	Chairman and Non-Executive Director	1 July 2017
Virginia Malley	Non-Executive Director	25	August 2014
John Edstein	Non-Executive Director	26	September 2014
Amanda Apted	Executive Director	13	May 2021

Principal activities

The Company is a listed investment company established to invest in a concentrated and actively managed portfolio of Australian listed securities with typically a mid-cap focus and cash, deposit products and senior debt, together with opportunistic allocations to global listed securities. The investment objective of the Company is to provide investors with an income stream and long-term capital growth in excess of its benchmark (the S&P/ASX 300 Accumulation Index) over minimum 5 year investment periods.

Review of operations
	31 December	31 December
	2021		2020
	$'000	$'000
Profit/(loss) before income tax	27,914		77,617
Income tax benefit/(expense)	(6,130)	(22,662)
Profit/(loss) for the half-year attributable to shareholders	21,784		54,955

As at 31 December 2021, the Company's Net Tangible Assets (NTA) after tax were $1.327 per share. This represents an increase of 2.1% compared to NTA after tax of $1.299 per share as at 30 June 2021. In addition, the Company paid a fully franked final dividend of 2.8 cents per share during the half-year.

The increase in NTA during the half-year reflected the return on numerous investment opportunities selected based on the Manager's long-standing investment philosophy and process which focuses on quality and value. The Manager's investment process aims to identify quality businesses with recurring earnings, conservative debt and sound management, that are trading at attractive valuations. This is underpinned by the Manager's deep research and analysis on securities held in the portfolio.

Where applicable, the volatility in global and local capital markets resulting from the coronavirus (COVID-19) pandemic continues to be reflected in the valuation of the Company's investment portfolio and its financial results for the half-year ended 31 December 2021.

Dividends

On 23 February 2022, the Directors declared a fully franked interim dividend payment of 2.8 cents per share.

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Perpetual Equity Investment Company Limited Directors' report For the half-year ended 31 December 2021 (continued)

Directors' report (continued)

For personal use only

State of affairs

The Company transitioned its administration and custody services from RBC Investor Services Trust to State Street Australia Limited on and from 27 September 2021.

There were no other significant changes in the state of affairs of the Company during the half year other than the matters disclosed under the review of operations.

Events subsequent to reporting date

The Directors are not aware of any event or circumstance since the end of the half-year not otherwise dealt with in this report that has or may significantly affect the operations of the Company, the results of these operations or the state of affairs of the Company in subsequent financial years.

Lead Auditor's Independence Declaration

A copy of the Lead Auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 4.

Rounding of amounts to the nearest thousand dollars

The Company is an entity of a kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191. Amounts in the Directors' report and the condensed interim financial report have been rounded to the nearest thousand dollars in accordance with the Legislative Instrument, unless otherwise indicated.

Signed on behalf and in accordance with a resolution of the Directors:

Director

Director

Sydney

23 February 2022

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