Mirrabooka Investments (MIR) H2 2024 earnings summary

Executive summary

• Focus remains on investing in companies outside the top 50 in Australia and New Zealand, aiming for capital growth and fully franked dividends.

• Achieved a profit of $10.7 million for FY2023/24, with a total fully franked dividend of $11.3 million, including a special dividend.

• Portfolio activity included significant trimming of top holdings and redeployment into new opportunities, resulting in 14 new stocks and 5 exits, now totaling 66 holdings.

• Total portfolio return for the year was 17.4% (including franking), outperforming the combined S&P/ASX Small Ordinaries and Mid Cap 50 Accumulation Index at 8.7%.

• Over 25 years, $10,000 invested at inception grew to $135,000, outperforming benchmark indices.

Financial highlights

• Net profit for the year was AUD 10.7 million, down from AUD 11.3 million the previous year, mainly due to lower trading portfolio gains.

• Options trading contributed an unprecedented AUD 2.5 million in income.

• Total dividend for the year is AUD 0.13 per share, including a special dividend.

• Management expense ratio decreased to 0.56% from 0.59% year-over-year.

• Realized capital gains after tax were $30.8 million, bolstering franking reserves.

Outlook and guidance

• Maintains a long-term investment approach, focusing on quality businesses and prudent capital rotation.

• Cautious on macroeconomic factors such as inflation, interest rates, and political uncertainty, but confident in portfolio resilience.

• Will seek to rotate capital into medium-term value opportunities while maintaining portfolio quality.

• Near-term earnings risk from a slowing economy, but moderating global inflation is supportive.

• No formal decision on a new share purchase plan; capital raising and buybacks are considered based on market conditions and company size.