Australian United Investment Company (AUI) H2 2024 earnings summary

Executive summary

• Investment strategy focuses on a diversified portfolio of quality Australian companies for income and capital appreciation, with 66.6% in ASX 20 stocks as of 30 June 2024.

• Statutory profit after tax for FY2024 was $49.1 million, down from $56.4 million in FY2023, with revenue and net profit after tax decreasing 10.4% and 13.4% respectively, excluding special items.

• Portfolio turnover was 8.8%, with significant acquisitions in ResMed and NextDC, and disposals in Reece and Goodman Group.

• The company maintains a long-term investment approach, with 61% of the portfolio held for over 10 years.

Financial highlights

• Profit after tax: $49.1 million (FY2023: $56.4 million), a 12.9% decrease.

• Earnings per share: 39.0 cents (FY2023: 44.7 cents); excluding special income, 37.9 cents (FY2023: 43.8 cents).

• Pre-tax NTA per share: $11.74 (FY2023: $10.63); after-tax NTA per share: $9.74 (FY2023: $8.99).

• Ordinary dividends per share: 37.0 cents, with a special dividend of 8.0 cents declared for FY2024.

• Management expense ratio remained low at 0.10%.

Outlook and guidance

• Cautious short-term outlook due to high market valuations and global uncertainties.

• Expectation for steady ordinary dividends and annual special dividends of eight cents per share for the next five years, subject to unforeseen circumstances.

• Anticipates a resilient but slow-growing Australian economy, with interest rates expected to remain stable.