Plato Income Maximiser (PL8) H2 2024 earnings summary

Executive summary

• FY24 operating profit after tax was $65.9 million, up $8.5 million from FY23, driven by strong share market performance.

• Total portfolio return for FY24 was 13.6%, matching the benchmark and maintaining a slight outperformance since inception.

• Distributed income yield for FY24 was 7.8%, exceeding the benchmark by up to 2.7%.

• Monthly dividends of $0.0055 per share were maintained, with total FY24 dividends paid at $0.066 per share.

• Share price has consistently traded at a premium to NTA, reflecting strong investor demand.

Financial highlights

• Pre-tax NTA per share increased from $1.04 to $1.082 during FY24, after paying $0.066 in fully franked dividends.

• Portfolio outperformed the benchmark in income by up to 2.7% for the year to July 2024.

• Since inception, annual income performance has exceeded the benchmark by 2.3%, with total return slightly ahead.

• Net assets at 30 June 2024 stood at $822.3 million.

• Portfolio turnover is 150%-200% annually, with 50% of holdings turned over 3-4 times per year.

Outlook and guidance

• Dividend outlook is stable, with the probability of dividend cuts returning to long-term averages.

• Dividend growth depends on a rebound in the Australian economy and higher market-level dividends, with potential improvement if interest rates are cut in 2025.

• Management remains cautiously optimistic, emphasizing active management to avoid dividend traps.

• Portfolio is positioned for superior income versus the benchmark, with expectations for a solid dividend environment in FY25.

• Special dividends and higher payout ratios may supplement income if off-market buybacks remain restricted.