Diversified United Investment (DUI) H2 2025 earnings summary

Executive summary

• Statutory profit after tax for FY2025 was $38.0 million, up 5.4% from $36.0 million in FY2024, with lower interest expense following debt repayment.

• Excluding special income items, net profit after tax increased 2.4% year-over-year.

• The investment portfolio remains diversified, with 77.1% in Australian equities, 20.4% in international equities, and 2.5% in cash and receivables as of 30 June 2025.

• Portfolio turnover was 10.5%, with notable acquisitions in Challenger Ltd and APA Group, and disposals in BHP Group and Woodside Energy.

• The company maintains a long-term investment approach, with 73% of holdings held for over 10 years.

Financial highlights

• Revenue from the investment portfolio was $43.7 million, down from $46.5 million in FY2024.

• Earnings per share were 17.6 cents (16.6 cents in FY2024), or 16.5 cents excluding special income items.

• Pre-tax Net Tangible Asset (NTA) backing per share rose to $6.40 (from $5.83), and share price at year-end was $5.36.

• 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 Australian economy is expected to remain resilient but with low growth and modest inflation; interest rates are anticipated to be cut.

• International outlook is uncertain due to trade tensions and geopolitical risks.

• The portfolio is expected to remain largely unchanged, with dividend per share maintained, though net income may be slightly lower due to reduced resource sector dividends.