MFF Capital Investments (MFF) H2 2024 earnings summary

Executive summary

• Net profit after tax rose 38% year-over-year to $447.4 million, driven by mark-to-market gains on investments and disciplined portfolio management.

• Pre-tax profit reached $639.1 million, up from $462.2 million in the prior year, with after-tax investment return of 26.5% on starting net assets.

• Fully franked final dividend increased to 7.0 cents per share, with Directors intending to raise the six-monthly dividend to 8.0 cents per share for the period ending 31 December 2024.

• Net assets grew 23% to $2,071 million, with investments at market value totaling $2,556.2 million at year-end.

Financial highlights

• Total net investment income rose 38% to $666.6 million year-over-year.

• Basic earnings per share increased to 77.35 cents from 55.34 cents.

• Pre-tax NTA per share was $4.284 (up from $3.398), and post-tax NTA per share was $3.574 (up from $2.909).

• Cash dividends paid totaled $46.0 million, with $17.5 million spent on share buybacks.

• Operating expenses (excluding interest and tax) were $4.2 million, down from $5.6 million.

Outlook and guidance

• Directors intend to increase the six-monthly dividend to 8.0 cents per share for the period ending 31 December 2024, subject to regulatory considerations.

• The company remains focused on maximizing compound, risk-adjusted after-tax returns and minimizing permanent capital loss.

• No detailed forward-looking statement provided due to market and currency fluctuations.