Qualitas (QAL) H2 2024 earnings summary

Executive summary

• Achieved record net capital inflow of AUD 2.8 billion and record deployment of AUD 4.2 billion in FY24, mainly in private credit and residential sectors, driving higher recurring earnings and margins year-over-year.

• Funds under management (FUM) reached AUD 8.9 billion, up 46% from FY23, with fee-earning FUM rising 40% to AUD 6.8 billion.

• Recurring revenue nearly doubled over two years, with funds management revenue up 22% and principal income up 47% year-over-year.

• Recognized as Firm of the Year Australia in the 2023 PERE Awards, highlighting industry leadership.

• FY24 final dividend of 5.75cps, total FY24 dividend of 8.00cps, payout ratio of 91%.

Financial highlights

• Normalized NPAT rose 25% to AUD 27.3 million year-over-year; net profit before tax was AUD 39 million, including a AUD 6.1 million reversal of net performance fee revenue.

• Funds management revenue increased 22% to AUD 53.7 million; principal income up 47% to AUD 23.3 million; funds management EBITDA margin reached 52%.

• Total funds management EBITDA grew 35% to AUD 40 million; transaction fees up 37%.

• Cash and cash equivalents at year-end were AUD 194 million, with AUD 110 million in investments.

• Dividend increased 7% to 8.0 cps, fully franked.

Outlook and guidance

• FY25 net profit before tax guidance: AUD 49–55 million, representing 26%–41% growth over FY24; EPS guidance: AUD 0.115–0.1291.

• Revenue growth underpinned by AUD 1.4 billion undrawn construction credit and AUD 1.5 billion of dry powder.

• Early FY25 pipeline at AUD 1.7 billion, with additional AUD 400–500 million in active transactions.

• Dividend per share expected in line with target payout ratio of 50%–95% of operating earnings.

• Continued investment in people and technology to support growth, with careful margin management.