L1 Long Short Fund (LSF) H2 2025 earnings summary

Executive summary

• Income from ordinary activities fell 28% year-over-year to $317.5 million for the year ended 30 June 2025.

• Net profit after tax declined 42% year-over-year to $99.5 million.

• Despite challenging macroeconomic and market conditions, the portfolio delivered positive absolute returns, with stronger performance in the second half.

Financial highlights

• Income before tax was $130.2 million, down 43% from the prior year.

• Basic and diluted EPS were 15.91 cents, down from 27.49 cents year-over-year.

• Net tangible asset (NTA) per share before tax increased 1% to $3.25; after tax, NTA was $3.12.

• Fully franked dividends paid: 6.00c in October 2024, 6.25c in April 2025, and 6.50c declared for the final 2025 dividend.

Outlook and guidance

• The investment manager views the Australian equity index as fully valued, with better opportunities offshore.

• Portfolio maintains a Value skew to position for medium-term returns despite a slowing macro backdrop.