Cadence Capital (CDM) H2 2024 earnings summary

Executive summary

• Achieved profit before tax of $27.7m and profit after tax of $21.6m for FY24, reversing prior year losses.

• Gross fund performance was +10.4% for the year, with strong returns from turnaround situations and select resource companies.

• Final fully franked dividend of 3.0c per share declared, bringing the full year dividend to 6.0c per share.

• Dividend reinvestment plan (DRP) in operation, with on-market buy-back planned for shares issued under DRP when trading at a discount to NTA.

Financial highlights

• Net asset value at year-end was $304.1m, up from $300.1m in FY23.

• Net investments valued at $246.7m, up from $122.4m last year.

• Earnings per share were 7.2 cents, compared to a loss of 2.6 cents per share last year.

• Total dividends paid in FY24 were $17.9m, with an annualised yield of 8.6% fully franked (12.2% gross including franking).

• Cash and cash equivalents at year-end were $65.7m, with bank overdrafts of $50.8m.

Outlook and guidance

• Management expects continued market volatility due to global economic concerns and interest rate trends.

• Increased cash levels in July 2024 to better position for market downturns.

• Focus remains on disciplined investment process and transparent communication with shareholders.