Clime Capital (CAM) H2 2024 earnings summary

Executive summary

• Net profit after tax fell 67% to $4.3 million for FY24, primarily due to lower realised gains and increased unrealised losses on financial assets compared to FY23.

• Revenue from ordinary activities declined 58% to $9.0 million, reflecting challenging market conditions and portfolio performance.

• Fully franked dividends of 5.4 cents per share were declared and paid, up 3% from FY23, with a focus on steady, growing income for shareholders.

• Net asset value increased slightly to $121.7 million, despite significant dividend payments and buybacks.

Financial highlights

• Net investment income dropped to $9.0 million from $21.5 million year-over-year, driven by a fall in realised gains and a swing to unrealised losses.

• Net realised gains on investments were $4.8 million (FY23: $11.2 million); net unrealised losses were $2.9 million (FY23: $2.2 million gain).

• Total operating expenses before finance costs decreased to $2.8 million (FY23: $3.1 million), mainly due to no performance fees accrued.

• Finance costs fell to $1.9 million from $2.1 million, reflecting fewer notes outstanding after buybacks.

• Basic and diluted EPS were 3.00cps, down from 9.42cps and 8.56cps respectively in FY23.

Outlook and guidance

• The company remains focused on growing fully franked quarterly dividends, aiming for a yield above the ASX average while managing risk.

• Future performance is tied to portfolio returns, which are subject to market, economic, and company-specific factors; no specific earnings guidance provided.