Pacific Current Group (PAC) H2 2024 earnings summary

Executive summary

• FY24 was transformational, marked by significant asset sales, externalization of investment management, and major organizational changes, resulting in a leaner cost structure and improved profitability.

• Underlying NPAT grew 24% year-over-year, with EBITDA up 18%, and FUM increased 18% to A$42.5b, excluding boutiques sold.

• Shareholder returns improved, including a 40% share price appreciation and a declared unfranked dividend of A$0.38 per share.

• Substantial capital flexibility was achieved, positioning for future growth, capital returns, and a planned buyback of up to AUD 300 million, pending regulatory approval.

• Multiple successful asset sales, including GQG, Pennybacker, Proterra, Avante, Cordillera, Carlisle, and Victory Park, generated proceeds above fair value estimates.

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.

• Underlying NPAT grew 24% to A$32.2m and underlying EBITDA rose 18% to A$41.6m.

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

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

• Cash and short-term deposits increased to A$320.5m, forming the largest portfolio component.

Outlook and guidance

• FY25 results will differ significantly due to asset sales and ongoing transaction settlements, with a focus on capital return, growth initiatives, and debt reduction.

• Management expects to maintain strong momentum, with a substantial off-market share buyback planned for late 2024 or early 2025.

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