AMCIL (AMH) H2 2024 earnings summary

Executive summary

• Net profit for FY2024 was AUD 7.5 million, slightly down from AUD 7.6 million year-over-year, mainly due to lower dividends from resource stocks, partially offset by increased bank dividends.

• Total portfolio return for FY2024 reached 20.5%, outperforming the S&P/ASX 200 Accumulation Index at 13.5%.

• Fully franked dividends totaled 5.0 cents per share, up from 4.0 cents in FY2023, including a 0.5 cent special dividend.

• Management expense ratio (MER) decreased to 0.56% from 0.66% due to cost credits from prior underperformance.

Financial highlights

• NTA at 30 June 2024 was AUD 1.26 per share, with shares trading at AUD 1.10, a 13% discount to NTA.

• Share price increased to AUD 1.15 in July, maintaining a discount to NTA.

• 1-year portfolio return was 20.5%, with 3-year, 5-year, and 10-year annualized returns at 7.9%, 8.7%, and 9.6% respectively.

• S&P/ASX 200 Accumulation Index 1-year return was 13.5%, with 3-year, 5-year, and 10-year returns at 5.4%, 10.7%, and 9.6%.

• Low level of capital gains due to utilization of prior year losses.

Outlook and guidance

• Cautious outlook due to high market valuations and economic softness despite positive sentiment from potential interest rate cuts.

• Portfolio maintains a significant cash allocation to capitalize on future opportunities.

• Focus remains on companies with strong management, growth potential, and resilient balance sheets.

• Portfolio is positioned to navigate diverse economic scenarios, with a mix of growth, stalwart, and income companies.

• Markets buoyed by US rate cut expectations, but China sentiment remains weak; ASX200 at all-time highs despite lagging resources.