Perpetual Equity Investment Company (PIC) H1 2025 earnings summary

Executive summary

• Report covers the half-year ended 31 December 2024, focusing on Australian mid-cap equities and select global opportunities.

• Net operating profit after tax was $5.9 million for 1H25, reversing a prior loss, driven by improved investment performance.

• Fully franked interim dividend of 4.0 cents per share declared, matching FY24 interim and final dividends.

• Annual dividend yield stands at 6.8%, with a grossed up yield of 9.6%.

• New Management Agreement with Perpetual Investment Management Limited commenced 12 December 2024, adjusting management fee structure.

Financial highlights

• Net profit after tax for the half-year was $5.9 million, compared to a loss of $3.0 million in the same period last year.

• Total investment income was $9.9 million, up from a loss of $3.2 million year-over-year.

• Investment portfolio delivered a 2.6% return for the six months to 31 December 2024, underperforming the benchmark return of 6.9%.

• Five-year portfolio performance of 10.2% p.a., outperforming the benchmark by 2.2%.

• Net Tangible Assets (NTA) after tax per share decreased to $1.244 from $1.272 at 30 June 2024, a -2.2% decline.

Outlook and guidance

• Board remains focused on providing reliable, fully franked dividends despite market volatility.

• Manager remains disciplined in investment approach, focusing on quality businesses with recurring earnings, conservative debt, and sound management at attractive valuations.

• Management sees potential for market volatility and mispricing, presenting long-term upside opportunities.

• Strong balance sheet and reserves underpin confidence in future dividend payments.

• No specific forward-looking financial guidance provided.