L1 Long Short Fund (LSF) H2 2024 earnings summary

Executive summary

• Profit before tax reached $226.98 million for the year ended 30 June 2024, with net profit after tax at $170.29 million, reflecting strong performance despite volatile markets.

• Income from ordinary activities rose 11% year-over-year to $441.08 million.

• Fully franked dividends of 5.5 cents per share (October 2023) and 5.75 cents per share (April 2024) were paid.

Financial highlights

• Net tangible asset (NTA) backing per share before tax increased 8% to $3.21 as of 30 June 2024; after tax, NTA was $3.08.

• Basic and diluted earnings per share were 27.49 cents, up from 26.60 cents year-over-year.

• Income before income tax attributable to equity holders rose 1% to $226.98 million; income after tax up 4% to $170.29 million.

Outlook and guidance

• Equity markets are seen as relatively fully priced, with narrow market leadership in Australia and the U.S.

• Ongoing risks include weakening consumer sentiment, geopolitical tensions, and U.S. elections.

• Attractive opportunities identified in low P/E, highly cash-generative companies and select short positions in expensive growth stocks.