AMCIL (AMH) H2 2024 earnings summary

Executive summary

• Full-year profit 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 was 20.5%, outperforming the market's 13.5% for the year.

• Paid a total fully franked dividend of 5.0 cents per share, 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, 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 of 5.4%, 7.9%, and 8.7% respectively.

• Dividend yield for FY2024 was 4.0%.

• 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 and manage risk.

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

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