Hearts and Minds Investments (HM1) H2 2024 earnings summary

Executive summary

• Total net investment income rose 45% to $83.4 million for the year ended 30 June 2024, with profit after tax up 55% to $50.9 million year-over-year.

• Total comprehensive income after tax was $53.5 million, down 15% from the prior year, reflecting lower other comprehensive income.

• The investment portfolio delivered an 11.7% pre-tax return, driven by strong technology holdings and improved Conference Portfolio performance.

• Fully franked dividends of 14 cents per share were paid, with an increased half-yearly dividend of 7.5 cents per share declared for October 2024.

• Share price increased from $2.26 to $2.58, narrowing the discount to pre-tax NTA to 17% and resulting in a 20% total shareholder return for FY24.

Financial highlights

• Net asset value increased from $675.5 million to $697.4 million, after paying $32.0 million in dividends.

• Pre-tax NTA per share rose to $3.09 (from $2.90), post-tax NTA per share to $3.05 (from $2.95).

• Realised investment gains were $33.3 million; unrealised gains were $53.6 million.

• Basic and diluted EPS was 22.26 cents, up from 14.35 cents year-over-year.

• Cash and cash equivalents at year-end were $65.9 million.

Outlook and guidance

• Board aims to maintain fully franked dividends, subject to cash reserves and franking credits.

• Ongoing improvement in investment performance is expected to further narrow the share price discount to NTA.

• Future performance is dependent on portfolio returns and broader market conditions; no specific forward guidance provided.