• Net Profit down 3.9% to $285.0 million
• Revenue from operating activities down 1.9% to $328.1 million
• Final dividend of 14.5 cents per share, plus a special dividend of 5 cents per share
• Total dividends for the year up 21.2% to 31.5 cents per share, fully franked

AFIC's investment focus is on a diversified portfolio of Australian equities, seeking to provide attractive dividend and capital growth to shareholders over the medium to long term. The Full Year Profit was $285.0 million, down from $296.4 million in the previous corresponding period. The decrease in the profit from last year was primarily due to lower dividends as bank holdings were trimmed. The final dividend was maintained at 14.5 cents per share fully franked. A special dividend of 5 cents per share has also been declared. This reflects the significant amount of realised capital gains and franking credits generated from the trimming of our shareholding in Commonwealth Bank of Australia during the financial year. Total fully franked dividends applicable for the year including the special dividend are 31.5 cents per share, an increase of 21.2% from the previous financial year's total fully franked dividend of 26.0 cents per share. Activity in the portfolio was focused primarily on recycling capital into existing holdings by trimming some positions where companies were trading at extreme valuations during the year (the Commonwealth Bank of Australia for example) and selling positions in companies where we felt they were facing significant challenges. The portfolio returned 10.7% for the financial year in comparison to the S&P/ASX 200 Accumulation Index return of 15.1% when the benefit of franking is included for both returns.

Market conditions remain unpredictable with the outlook for economic growth unclear, consumer confidence softening and the prospect for the employment market remaining highly variable. In this environment corporate earnings appear set to slow as revenue growth appears harder to achieve with many corporates now talking about cost out initiatives. The dispersion in market valuations between the winners and losers is extremely wide and is also likely to exacerbate volatility as we anticipate that the market's tolerance for earnings disappointment won't be high. Patient deployment of capital is required in times like these. Finally geopolitical factors remain highly relevant with ongoing conflicts and with politics, particularly out of the US, driving sharp changes in market sentiment. While we are aware of the volatile geopolitical environment our focus continues to remain on the fundamentals of the companies we seek to invest in.