Clime Capital (CAM) H2 2025 earnings summary

Executive summary

• Net profit for FY25 was $3.06 million, down from $4.33 million in FY24, reflecting lower investment revenue and higher unrealised losses, partially offset by higher realised gains and interest income.

• Dividends declared for FY25 totaled $8.1 million, with a quarterly dividend of 1.35 cents per share, now 50% franked, and a final dividend paid post-year-end.

• Strategic shift included building a debt portfolio of first mortgage securities targeting 9% annual income, gradual liquidation of direct property, and renewed focus on value-based investment.

• Shareholder equity declined from $121.7 million to $119.8 million after dividends, buybacks, and capital raising.

• Convertible notes were rolled from 2025 maturity (5.25% interest) to 2028 maturity (6.5% interest, monthly paid), with a new prospectus for up to 14 million additional notes.

Financial highlights

• Investment revenue was $6.61 million (FY24: $7.10 million); net realised gains $5.44 million (FY24: $4.83 million); net unrealised losses $4.62 million (FY24: $2.89 million).

• Total expenses before finance costs were $2.70 million, steady year-over-year.

• Finance costs were $1.92 million (FY24: $1.90 million).

• Basic and diluted EPS were 2.05 cps (FY24: 3.00 cps).

• Pre-tax NTA at 30 June 2025 was $0.77 (FY24: $0.81); post-tax NTA was $0.81 (FY24: $0.82).

• Share price at year-end was $0.71 (FY24: $0.82).

Outlook and guidance

• Board intends to maintain quarterly dividends at 1.35 cps (5.4 cps p.a.), 50% franked, targeting a pre-tax yield of 7% on NTA, rising to 8.5% with franking.

• Focus remains on growing dividends and capital value, with risk managed through portfolio diversification and credit investments.

• Future performance is subject to market, economic, and investee-specific factors; no specific earnings guidance provided.