Diversified United Investment (DUI) H1 2026 earnings summary

Executive summary

• Revenue from ordinary activities was $21.4 million, down 6.6% year-over-year, while profit after tax rose 3.7% to $19.2 million, aided by special income items and fair value gains on unlisted managed funds.

• Earnings per share increased 3.5% to 8.9 cents; excluding special items, EPS fell 4.7% to 8.1 cents.

• Interim dividend declared at 7.0 cents per share fully franked, unchanged from the prior period, with a Dividend Reinvestment Plan available.

• A merger with Australian United Investment Company Limited (AUI) was announced, with implementation expected in late April 2026, subject to approvals.

Financial highlights

• Profit after tax was $19.2 million (up from $18.5 million), including $1.8 million in special income items.

• Excluding special income items, profit after tax was $17.4 million, down 4.8% year-over-year.

• Pre-tax Net Tangible Asset (NTA) backing per share was $6.38 at 31 December 2025, slightly down from $6.40 at 30 June 2025.

• Portfolio turnover was low at 0.2% for the period.

• 1,636,586 shares were bought back and cancelled at a cost of $8.7 million.

Outlook and guidance

• Modest growth is expected for the Australian economy, with concerns over productivity, deficits, and political leadership.

• Inflation remains above target, reducing the likelihood of near-term interest rate cuts; further rate increases are possible in 2026.

• Annual dividend of 16 cents per share fully franked is expected to be maintained.