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.

• Portfolio return including franking was 20.5%, outperforming the S&P/ASX 200 Accumulation Index at 13.5%.

• Fully franked dividends totaled 4.0 cents per share, with a final dividend of 2.5 cents and a special dividend of 0.5 cents per share declared.

• Management expense ratio (MER) improved to 0.56% from 0.66% in the prior year.

• Major contributors to outperformance included Goodman Group, Gentrack, Macquarie Technology Group, CAR Group, Netwealth Group, and Wesfarmers.

Financial highlights

• Net tangible assets (NTA) at 30 June 2024 were 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.

• Total comprehensive income was AUD 47.16 million, up from AUD 27.94 million in the prior year, driven by higher unrealised gains.

• Net assets increased to AUD 355.2 million from AUD 320.2 million year-over-year.

Outlook and guidance

• Cautious outlook due to high market valuations, economic softness, and weak China sentiment, 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.

• Geopolitical risks and policy uncertainty from elections remain relevant; management remains cautious in the short term but confident in the investment approach.