Perpetual Equity Investment Company (PIC) H2 2025 earnings summary

Executive summary

• Net profit after tax for FY25 was $21.7 million, down 23.9% year-over-year due to softer investment performance.

• Fully franked final dividend of 4.0 cents per share declared, bringing total FY25 dividend to 8.0 cents per share, matching the prior year.

• Annual dividend yield was 6.6%, with a grossed-up yield of 9.4%, outperforming the S&P/ASX 300 Accumulation Index yield of 3.2%.

• Profit reserve stands at $67.8 million, providing 2.2 years of dividend coverage.

• Board renewal included the appointment of a new independent director and a new co-portfolio manager.

Financial highlights

• Investment portfolio returned 6.5% for the year, underperforming the benchmark index return of 13.7%.

• Five-year annualised portfolio return was 12.1%, outperforming the benchmark by 0.3% p.a.

• Net tangible assets after tax were $1.248 per share, a decrease of 1.9% from the previous year.

• Total investment income was $32.6 million, with $18.4 million from dividends and $13.0 million from net gains on financial instruments.

• Management fees for the year were $5.0 million.

Outlook and guidance

• The company remains focused on delivering reliable income and long-term capital growth despite market volatility.

• Portfolio positioning is increasingly flexible, with greater exposure to offshore and cyclical stocks expected to benefit from market recovery.

• Dividend sustainability is supported by a strong profit reserve and franking account.