Mirrabooka Investments (MIR) H1 2025 earnings summary

Executive summary

• Focus on medium- to long-term investment gains in small and mid-cap companies outside the ASX 50 Leaders Index, with a strategy of low turnover and long holding periods.

• Celebrated 25 years of investing in small and mid-sized companies in Australia and New Zealand.

• Half-year profit was $4.6 million, unchanged from the same period last year.

• Interim dividend increased to 4.5 cents per share, fully franked, up from 4.0 cents in 2023.

• Emphasis on delivering attractive, fully-franked dividends sourced from realized gains, with a history of special dividends depending on capital gains.

Financial highlights

• Portfolio value increased from $591.5 million in 2023 to $667.9 million at 31 December 2024.

• Management expense ratio remained steady at 0.56%.

• Revenue from operating activities was $6.2 million, down 5.8% year-over-year.

• 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

• Cautious outlook due to high market valuations and attractive risk-free rates, leading to a more conservative approach to new investments.

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

• Management is content to hold surplus cash while seeking compelling opportunities.

• Ongoing commitment to long-term investing in quality companies despite current valuation caution.

• Emphasizes portfolio quality to navigate diverse economic scenarios.