Argo Investments : App 4D - Half-year report to 31 December 2021

Appendix 4D

Half-year report onlyuse

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2022

Results for announcement to the market

Half -year ended 31 December 2021

Comparative figures being the half-year ended 31 December 2020

Argo Investments Limited

ABN 35 007 519 520

only				Consolidated
						$A'000
		Inc me from operating activities	up	88.8%	to	141,355
		Profit for the half-year	up	91.5%	to	128,987
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		Dividends
		Interim fully franked dividend payable 11 March 2022				16.0 cents
		(previous corresponding period 14.0 cents fully franked)

The Company's Dividend Reinvestment Plan will operate for the interim dividend. The Directors have resolved that the shares will be allotted at a 2% discount to the market price of Argo shares, which will be the volume

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	weighted average ex-dividend market price of the shares traded on the record date and the three business
	d ys following the record date.
	The record date for determining entitlements to the interim dividend	21 February 2022
	The election date for determining participation in the Dividend Reinvestment Plan	22 February 2022
	Final fully franked dividend for year ended 30 June 2021 paid 17 September 2021	14.0 cents

Net Asset Backing

N t Tangible Asset Backing per share before any provision for deferred tax on the unrealised gains on the long-term investment portfolio was $9.52 as at 31 December 2021, compared with $8.01 as at 31 December 2020.

As a long-term equity investor, Argo does not intend to dispose of its long-term investment portfolio. However, if estimated tax on unrealised portfolio gains was to be deducted, the net tangible asset backing

Forper share would be $8.17 as at 31 December 2021, compared with $7.07 as at 31 December 2020.

argoinvestments.com.au |

Directors' Report

The Directors present the financial report of the consolidated enƟty, consisƟng of Argo Investments Limited and its controlled enƟty (Argo or Company), for the half-year ended 31 December 2021.

onlyProfit for the half-year under review increased by 91.5% on the previous corresponding period to $129.0 million and earnings per share increased 91.4% to 17.8 cents per share. The rise in profit

The Company's objecƟve is to maximise long-term returns to shareholders through a balance of capital and dividend growth. It does this by invesƟng in a diversified Australian equiƟes porƞolio which is acƟvely managed in a tax-aware manner within a low-cost structure.

REVIEW OF OPERATIONS

usewas primarily due to increased investment income as many companies liŌed dividend payments as a result of the economic recovery aŌer the iniƟal impact COVID-19 had on the economy.

The Directors have declared a fully franked interim dividend of 16.0 cents per share compared with 14.0 cents per share paid for the half-year to 31 December 2020. This dividend totals $116.3 million, compared with $101.2 million in the previous corresponding period and will be paid on 11 March 2022.

Net tangible asset backing per Argo share was $9.52 as at 31 December 2021, compared with $9.01 as at 30 June 2021 and $8.01 as at 31 December 2020.

During the half-year, $19.5 million of addiƟonal capital was raised for investment from the Dividend Reinvestment Plan.

The following persons were Directors during the half-year and are in office at the date of this report:

Name	Period of Directorship
Russell Allan Higgins AO (Chairman)	Director since 1 September 2011
Jason Beddow (Managing Director)	Director since 3 February 2014
Anne BernadeƩe Brennan	Director since 1 September 2011
Christopher Edgar Cuffe AO	Director since 25 August 2016
Roger Andrew Davis	Director since 1 June 2012
Elizabeth Anne Lewin	Director since 1 July 2018
personal	Director since 1 March 2012
Joycelyn Cheryl Morton
AUDITOR'S INDEPENDENCE DECLARATION
For

The Auditor's Independence DeclaraƟon, as required under SecƟon 307C of the CorporaƟons Act 2001, is set out on page 3.

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ROUNDING OF AMOUNTS

Australian SecuriƟes and Investments Commission CorporaƟons (Rounding in Financial/Directors' Reports) Instrument 2016/191 applies to the Company and accordingly amounts have been rounded to the nearest one thousand dollars in accordance with that Instrument, unless otherwise stated.

This report is made in accordance with a resoluƟon of the Board of Directors.
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On behalf of the Board
use	Sydney
R.A. Higgins AO
Chairman	7 February 2022
For personal

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For personal use only

Auditor's Independence Declaration

As lead auditor for the review of Argo Investments Limited for the half-year ended 31 December 2021, I declare that to the best of my knowledge and belief, there have been:

1. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
2. no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Argo Investments Limited and the entities it controlled during the period.

Julian McCarthy	Adelaide
Partner	7 February 2022
PricewaterhouseCoopers

PricewaterhouseCoopers, ABN 52 780 433 757

Level 11, 70 Franklin Street, ADELAIDE SA 5000, GPO Box 418, ADELAIDE SA 5001 T [phone], F [phone], www.pwc.com.au

Liability limited by a scheme approved under Professional Standards LegislaƟon.

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