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%.

• The company maintained a diversified portfolio, with 78.5% in Australian equities, 20.6% in international equities, and 0.9% in cash and short-term receivables as of 30 June 2024.

• The investment approach remains focused on long-term capital appreciation and sustainable dividend income, with a medium to long-term view and active risk management.

Financial highlights

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

• Earnings per share were 16.0 cents excluding special income items (2023: 18.9 cents), or 16.6 cents including special items (2023: 19.8 cents).

• Pre-tax NTA backing per share rose to $5.83 (2023: $5.40); share price at 30 June 2024 was $5.13 (2023: $4.92).

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

• Accumulation performance of pre-tax NTA backing increased 11.1% for the year, compared to the S&P/ASX 200 Accumulation Index's 12.1%.

Outlook and guidance

• The company is cautious on the short-term outlook due to high market valuations, global economic slowdown risks, and potential for market volatility, but remains confident in equities for long-term investment.

• Signs of inflation control in Australia suggest the next interest rate move may be downward, though earnings multiples are above long-term averages.