Hearts and Minds Investments (HM1) H2 2024 earnings summary

Executive summary

• Pre-tax investment portfolio increased 11.7% for the year ended 30 June 2024, driven by strong technology holdings and improved Conference Portfolio performance.

• Total comprehensive income after tax was $53.5 million, down from $63.0 million in the prior year, reflecting lower other comprehensive income.

• Share price rose from $2.26 to $2.58, narrowing the discount to pre-tax NTA to 17% and delivering a total shareholder return of 20% for FY24.

• Fully franked dividends of 14 cents per share were paid, with an increased half-yearly dividend of 7.5 cents per share declared for October 2024.

• $9.4 million was paid and $6.4 million provisioned for donations to Australian medical research organisations, in line with the company's philanthropic objectives.

Financial highlights

• Total net investment income rose 45% to $83.4 million compared to $57.6 million last year.

• Net income after tax increased 55% to $50.9 million from $32.7 million year-over-year.

• Realised investment gains were $33.3 million; unrealised gains were $53.6 million.

• Net asset value increased from $675.5 million to $697.4 million, after paying $32.0 million in dividends.

• Basic and diluted EPS was 22.26 cents, up from 14.35 cents in the prior year.

Outlook and guidance

• Board aims to maintain fully franked dividends, subject to cash reserves and franking credits.

• Ongoing improvement in investment performance is expected to further narrow the share price discount to NTA.

• Future performance will depend on portfolio returns and prevailing market conditions; no specific earnings guidance provided.