Diversified United Investment (DUI) H2 2024 earnings summary

Executive summary

• Statutory profit after tax for FY2024 was $36.0 million, down from $42.8 million in FY2023, reflecting a 15.9% decrease year-over-year.

• Excluding special income items, revenue fell 10.9% and net profit after tax decreased 14.5% compared to the prior year.

• The company maintained a diversified portfolio, with 78.5% in Australian equities and 20.6% in international equities at 30 June 2024.

• Portfolio turnover was low at 3.1%, with significant acquisitions in ResMed, Woodside Energy, and NAB, and disposals in PEXA Group, CSL, and Ramsay Health Care.

Financial highlights

• Revenue from the investment portfolio was $46.5 million, down from $51.1 million in FY2023.

• Earnings per share (EPS) was 16.6 cents (FY2023: 19.8 cents); EPS excluding special income items was 16.0 cents (FY2023: 18.9 cents).

• Pre-tax Net Tangible Asset (NTA) backing per share at 30 June 2024 was $5.83 (FY2023: $5.40).

• Dividends per share remained steady at 16.0 cents, fully franked.

• Management expense ratio was 0.12%, unchanged from the prior year.

Outlook and guidance

• The outlook is cautious due to high market valuations, global economic slowdown risks, and potential for interest rate cuts in the next 12 months.

• Directors expect continued portfolio value fluctuations in line with market movements but remain confident in long-term equity investments.