BKI Investment Company Limited (ASX: BKI) has delivered a strong preliminary final report for the year ended 30 June 2026, recording a 4.1% increase in net profit attributable to shareholders, reaching $64.4 million. The company, a listed investment vehicle primarily focused on long-term investment in ASX-listed securities, aims to provide shareholders with attractive returns through fully franked dividends and capital growth. Total revenue for the period rose 2.7% to $72.4 million, driven by higher ordinary and special investment revenue.
Ordinary revenue from the investment portfolio increased by 2.0% to $70.7 million, with BKI receiving higher dividends from major holdings such as BHP Group, Harvey Norman Holdings, and Telstra Group. Special investment revenue saw a notable 46.9% increase to $1.7 million, including special dividends from TPG Telecom and Wesfarmers Limited. However, interest income decreased to $2.9 million from $4.2 million in FY2025 due to lower interest rates and reduced cash on deposit. Directors have declared a final fully franked dividend of 4.00 cents per share, maintaining the previous year’s payout, bringing total FY2026 dividends to 7.95 cents per share.
In a significant move to enhance shareholder income consistency, BKI’s Board has decided to transition to a quarterly dividend payment schedule, effective after the upcoming final dividend. Furthermore, the company’s Dividend Reinvestment Plan (DRP) will be indefinitely suspended, meaning all future dividend payments will be in cash. The company’s Net Tangible Asset (NTA) backing per ordinary share before tax increased to $2.07 at 30 June 2026, up from $1.96 in the prior year. The total portfolio, including cash and receivables, grew by 5.9% to $1.67 billion, while the Management Expense Ratio (MER) improved to 0.160% from 0.166%.
