Pacific Current Group (PAC) H2 2024 earnings summary

Executive summary

• FY24 was transformational, marked by significant asset sales, externalisation of investment management to GQG Partners, and a major cost base reduction exceeding 40%, resulting in strong financial performance and a leaner structure.

• Statutory net profit after tax reached $110.1m, reversing a $15.8m loss in FY23, with underlying NPAT up 24% to $32.2m, driven by asset sales and disciplined expense management.

• Major asset sales included GQG, Pennybacker, Proterra, Avante, Cordillera, Carlisle, and Victory Park, generating proceeds above fair value and significant capital flexibility.

• A substantial off-market share buyback of up to AUD 300 million is planned, subject to regulatory and tax approvals.

• Board and management changes included the appointment of Michael Clarke as Acting CEO and new directors.

Financial highlights

• Net profit after tax swung from a loss of AUD 15.8 million in FY23 to a gain of AUD 110 million in FY24, driven by asset sale gains and fair value movements.

• Underlying EBITDA grew 18% and underlying NPAT rose 24% year-over-year to AUD 32 million.

• EPS increased to AUD 0.624 per share from AUD 0.508, and a final dividend of AUD 0.38 per share was declared (unfranked).

• Statutory net asset value per share rose 16% to AUD 11.48; fair value NAV per share reached AUD 13.47.

• Cash and short-term deposits surged to AUD 318 million at year-end, forming the largest portfolio component.

Outlook and guidance

• FY25 results will differ significantly due to asset sales, a leaner cost base, and ongoing transaction settlements.

• Focus areas include completing announced transactions, executing the share buyback, supporting boutique growth, and reducing debt.

• Capital will be allocated to the most accretive uses, including reinvestment, buybacks, dividends, and new growth opportunities.

• No further transactions are currently on the horizon, but opportunistic sales or investments remain possible.

• Recent agreements to sell interests in Carlisle and VPC expected to further reshape the portfolio and provide liquidity.