Argo Investments (ARG) H2 2024 earnings summary

Executive summary

• Full-year profit was $253.0 million, down 6.9% year-over-year, mainly due to lower dividends from major holdings and reduced income from option writing and trading activities.

• Earnings per share fell to 33.3 cents from 36.1 cents last year; total assets increased 7.3% to $7.4 billion.

• Both interim and final dividends were maintained at last year's record high of 34.5 cents per share, fully franked, with a 3.0 cent LIC capital gain component in the final dividend.

• The company continues its conservative, low-cost, internally managed investment approach, with no debt and a diversified portfolio of 86 Australian listed companies.

Financial highlights

• Revenue from dividends and distributions was $271.9 million, slightly down from $273.1 million in 2023.

• Net profit after tax was $252.96 million, compared to $271.7 million in the prior year.

• Net tangible assets per share rose to $9.61 from $9.03 year-over-year.

• Management expense ratio improved to 0.15% from 0.16% last year.

• Cash and cash equivalents at year-end were $97.2 million.

Outlook and guidance

• The company remains focused on delivering reliable, fully franked dividends and capital growth, with cash available for further investments.

• No significant changes to the business model are anticipated; the company will continue to actively manage its diversified portfolio.