Regal Partners Global Investments (RG!) H2 2024 earnings summary

Executive summary

• Achieved a net portfolio return of +17.8% for FY24, with total shareholder return of +29.5% including franking, driven by strong performance in AI semiconductors, energy, and defence sectors.

• Net profit after tax rose 19% year-over-year to $64.1 million, with EPS of 20.16 cents and dividends totaling 10 cents per share, fully franked.

• Share price increased 19% to $1.94, and the discount to NTA narrowed from 18% to 13% over the year.

• Board updated dividend policy to at least 5.0 cents per share every six months, with a profits reserve of $274.1 million, equating to over 9 years of dividend capacity at current rates.

• Significant buy-back activity, with 52.2 million shares repurchased for $91.2 million, representing over 31% of capital since mid-2020.

Financial highlights

• Income from ordinary activities increased 17% year-over-year to $135.3 million.

• Operating profit before tax rose 18% to $88.4 million; after-tax profit up 19% to $64.1 million.

• Net tangible assets (NTA) per share post-tax (excluding deferred tax) increased 12.1% to $2.23.

• Dividend yield was 5.2% net and 7.4% grossed-up, based on 30 June 2024 share price.

• Cash and cash equivalents at year-end were $155.6 million.

Outlook and guidance

• Board intends to maintain or grow dividends, fully franked where possible, and continue capital management initiatives.

• Updated investment guidelines from 1 July 2024 increase gross exposure limit to 200% of NAV, providing greater flexibility.

• Portfolio positioned with high net exposure (99% at 30 June 2024), with ongoing focus on global equities and thematic opportunities.