Mirrabooka Investments (MIR) H1 2025 earnings summary

Executive summary

• Half-year profit was AUD 4.6 million, unchanged from the previous year, with a focus on small and mid-cap companies outside the ASX 50 Leaders Index.

• Interim dividend increased to 4.5 cents per share, fully franked, up from 4.0 cents in 2023, and paid out of realized gains.

• Portfolio value rose to nearly AUD 670 million at 31 December 2024, up from just under AUD 600 million a year earlier.

• Celebrated 25 years of investing in small and mid-sized companies in Australia and New Zealand, aiming for medium to long-term gains and fully franked dividends.

• Portfolio activity was subdued due to high valuations, with selective buying and risk-managed selling.

Financial highlights

• Earnings per share for the half-year was 2.37 cents, slightly down from 2.41 cents last year.

• Management expense ratio held steady at 0.56% (annualised).

• Portfolio return for the half-year was 11.5%, outperforming the benchmark at 7.5%.

• Net asset backing per share before tax was $3.41 at 31 December 2024, up from $3.06 a year earlier.

• Total comprehensive income for the half-year was $44.2 million, up from $32.6 million in the prior period.

Outlook and guidance

• Management remains cautious due to high market valuations and is content to hold surplus cash while seeking compelling opportunities.

• Market optimism is driven by expectations of easing global inflation and peaking interest rates, but concerns remain about valuations outpacing earnings.

• Long-term focus remains on quality companies with sustainable earnings growth.

• Emphasizes portfolio quality to navigate diverse economic scenarios.