Mirrabooka Investments (MIR) H2 2025 earnings summary

Executive summary

• Full-year profit declined to $7.9 million from $10.7 million, mainly due to lower dividend and option income, and absence of prior year trading gains.

• Portfolio return was 11.4% for FY25, underperforming the benchmark's 15.2%, but long-term performance remains strong.

• Paid a total fully franked dividend of 11.0 cents per share, down from 13.0 cents in FY24, which included a special dividend.

• A successful $85.1 million capital raising via a one-for-seven rights issue increased cash reserves and shareholder participation, with a 119% take-up rate.

• Focus remains on investing in small and medium-sized companies outside the S&P/ASX 50, aiming for medium to long-term gains and attractive fully franked dividends.

Financial highlights

• Management expense ratio improved to 0.54% from 0.56%.

• Portfolio returns over 1, 3, 5, and 10 years were 11.4%, 15.5%, 12.7%, and 13.0% per annum, respectively, including franking.

• Ordinary dividend maintained at $0.065 per share, with new shares from the rights issue eligible.

• FY25 profit was $7.9 million, compared to $10.7 million in FY24.

• Portfolio return of 11.4% compared to 15.2% benchmark; previous year saw 17.4% return vs. 8.7% benchmark.

Outlook and guidance

• Entering FY26 with a significant cash holding of 11% of portfolio value, providing flexibility for future investments.

• Management remains focused on long-term investment discipline, emphasizing patience and selectivity in new investments.

• Market volatility is expected to persist, but the company is well-positioned to capitalize on future opportunities.