Diversified United Investment (DUI) H1 2025 earnings summary

Executive summary

• Revenue rose 1.2% to $23.0 million for the half year ended 31 December 2024, with profit after tax up 4.2% to $18.5 million compared to the prior period.

• Earnings per share increased 4.9% to 8.6 cents; excluding special items, EPS rose 6.3% to 8.5 cents.

• Pre-tax NTA per share was $6.20 at 31 December 2024, up from $5.83 at 30 June 2024.

• Interim dividend of 7.0 cents per share fully franked, unchanged from the prior year, payable 21 March 2025.

• Portfolio allocation: 77.1% Australian equities, 20.3% international equities, 2.6% cash and receivables.

Financial highlights

• Profit after tax was $18.5 million, up from $17.8 million; excluding special income items, profit after tax rose 5.6%.

• Revenue from ordinary activities was $23.0 million, up from $22.7 million.

• Net decrease in fair value of unlisted managed funds of $34,000 after tax; special dividends received totaled $220,000 after tax.

• Operating expenses rose 2%, offset by lower net interest costs.

• Cash and cash equivalents increased to $31.6 million from $3.8 million at 30 June 2024.

Outlook and guidance

• Australian economy expected to grow slowly due to low productivity, lower commodity prices, and regulatory constraints.

• Inflation anticipated to moderate and interest rates to move marginally lower during the year.

• Share market at record highs; cautious short-term outlook but confident in long-term equities investment.

• Borrowings fully repaid post-period, with adequate liquidity for new opportunities.