L1 Group (L1G) H2 2024 earnings summary

Executive summary

• FUM closed at A$13.0b, down 25% year-over-year, with 70% retail; net outflows totaled A$4.9b across retail and institutional channels.

• Management fee revenue fell 13% to A$174.4m as average FUM declined 15%, partly offset by a higher average fee rate.

• Adjusted expenses fell 9% year-over-year as turnaround savings progressed ahead of schedule.

• Statutory NPAT was A$45.1m, down 44%; adjusted EBIT was A$82.9m, down 19%.

• Growth strategy centers on product innovation, partnerships, and leveraging a strong balance sheet.

Financial highlights

• Statutory PBT was A$73.1m, down 37%; turnaround costs totaled A$20m, mainly non-cash adjustments.

• Performance fees were nil, with offshore fund crystallization dates limiting fees.

• Final fully franked dividend was 4cps; full-year dividend yield was 9.6% based on the 28 June 2024 share price.

• Cash and term deposits were A$250m; seed investments were A$64m.

Outlook and guidance

• Turnaround program delivered 136% of the FY24 cost reduction target, with 80% of the FY25 target already captured.

• New Platinum-managed products, sub-advisory partnerships under Partner Series, and a hedge fund strategy are planned; the first Partner Series fund is expected in early 2025.

• Priorities include stabilizing flows, improving investment returns, enhancing client engagement, and further aligning remuneration with long-term outcomes.