L1 Global Long Short Fund (GLS) H2 2025 earnings summary

Executive summary

• Net profit after tax was $9.7 million for FY2025, down from $12.8 million in FY2024, with a pre-tax NTA return of 3.4% compared to the MSCI AC World Net Index return of 18.4% in A$ terms for the same period.

• Shares continued to trade at a discount to NTA, with a total shareholder return (including franking credits) of 0.5% for the year.

• A Scheme Implementation Deed was signed in October 2024 to address the persistent share price discount to NTA, but was later withdrawn due to insufficient voter turnout.

• An on-market buyback authority for up to 50% of share capital was approved, with a limit of 20% until the EGM to nominate new directors.

Financial highlights

• Statutory pre-tax operating profit was $13.9 million; post-tax operating profit was $9.7 million for FY2025.

• Net tangible assets (pre-tax) per share at 30 June 2025 were $1.5151; post-tax NTA per share was $1.4832.

• Market capitalisation at 30 June 2025 was $393.1 million, with a share price of $1.33 and 296,678,367 shares on issue.

• Grossed-up dividend yield was 6.5% based on the closing share price, with fully franked dividends totaling 6 cents per share for the year.

• Earnings per share were 3.28 cents, down from 4.33 cents in FY2024.

Outlook and guidance

• The Board highlighted ongoing uncertainty due to inflation, rising interest rates, and geopolitical risks, with a cautious investment stance and an average net invested position of 79%.

• The new Board, to be elected at the EGM, will evaluate proposals to potentially change the investment manager.

• Shareholders may exit at a price close to NTA via the buyback or benefit from a narrowing discount if investment performance improves.