Regal Partners (RPL) H1 2024 earnings summary

Executive summary

• Normalised NPAT for 1H24 was $59.0m, up 349–350% year-over-year, with statutory NPAT at $50.2m, reflecting strong fee growth and recent acquisitions.

• Revenue rose 212% to $148.5m, driven by strong performance fees and FUM growth.

• FUM reached $12.3bn at 30 June 2024, rising to $16.5bn pro forma post-acquisitions of Merricks Capital and Argyle Group.

• Interim dividend increased 60% to 8c per share, fully franked, with a dividend reinvestment plan available.

• Acquisitions of Merricks Capital and Argyle Group accelerated diversification, scale, and investment capabilities.

Financial highlights

• Performance fees reached $59.6m, up 645% year-over-year, with 70% of eligible FUM at or above high-water mark.

• Management fees for the half were $60.6m, with total net income at $148.5m, up 212% year-over-year.

• Net inflows of $0.7bn in 1H24, with $1.2bn growth from investment performance.

• Cost/income ratio improved to 43% from 58% year-over-year.

• Pro forma normalised NPAT for 1H24 (including Merricks & Argyle) would be $74.1m.

Outlook and guidance

• Confident in maintaining positive net flow outlook, with institutional mandates under review and no diminished confidence in future flows.

• Expectation of further growth in performance fees as more FUM approaches high water marks.

• Focus remains on organic growth, product innovation, and disciplined assessment of further inorganic opportunities.

• Revenue synergies from recent acquisitions expected to be realised over time.

• Continued investments in distribution and investor relations to drive future net inflows.