WAM Strategic Value (WAR) H2 2024 earnings summary

Executive summary

• Achieved record operating profit before tax of $28.7 million, up 44.7% year-over-year, and net profit after tax of $22.1 million, up 40.1% from FY2023.

• Investment portfolio performance increased 18.6% for FY2024, with total shareholder return (TSR) of 18.9% including franking credits.

• Fully franked full year dividend increased 50% to 5.25 cents per share, including a special dividend of 1.0 cent per share.

• Net tangible asset (NTA) before tax per share rose to $1.29 from $1.17, and look-through pre-tax NTA was $1.46 per share at year-end.

Financial highlights

• Revenue from ordinary activities was $38.3 million, up 72.5% year-over-year.

• Operating profit before tax reached $28.7 million, and net profit after tax was $22.1 million.

• Cash and cash equivalents at year-end were $17.9 million, with total assets of $244.3 million.

• Profits reserve stood at $30.5 million, supporting 2.9 years of dividend coverage.

Outlook and guidance

• Board remains committed to paying fully franked dividends, subject to profits reserve and franking credits.

• Company will continue to pursue investment in discounted assets to achieve capital growth and dividend objectives.