L1 Global Long Short Fund (GLS) H2 2024 earnings summary

Executive summary

• Delivered a pre-tax net tangible asset (NTA) return of 3.7% for the year ended 30 June 2024, with net profit after tax of $12.8 million, down from $37.9 million in 2023.

• Total fully-franked dividends for FY24 were 6 cents per share, matching the prior year, representing a grossed-up yield of 6.1% on the closing share price.

• Shares traded at a discount to pre-tax NTA, but the discount narrowed during the year, resulting in a total shareholder return (TSR) of 18.6% including franking credits.

• A strategic review concluded with a proposed scheme of arrangement to merge with Platinum International Fund (PIXX), aiming to close the share price discount.

Financial highlights

• Statutory pre-tax operating profit was $18.3 million; post-tax profit was $12.8 million.

• Pre-tax NTA per share at 30 June 2024 was $1.5337; post-tax NTA per share was $1.5108.

• Market capitalisation at year-end was $413.6 million, with 295,430,882 shares on issue.

• Earnings per share were 4.33 cents, down from 12.85 cents in 2023.

• Net assets stood at $446.3 million.

Outlook and guidance

• AI-related holdings such as TSMC and Broadcom performed well, with expectations that AI functionality will drive differentiation in the smartphone sector.

• The Board will provide an update on the proposed scheme of arrangement by the end of September 2024.