Ryder Capital (RYD) H1 2025 earnings summary

Executive summary

• Statutory profit after tax for 1H FY25 was $1.23m, up from $818k in 1H FY24; total comprehensive after-tax income rose to $13.02m from $3.16m year-over-year, driven by strong portfolio performance and realised profits from share sales.

• Pre-tax net tangible assets (NTA) per share increased to $1.5446 at 31 Dec 2024 from $1.3875 at 30 Jun 2024, including a $0.05 fully franked dividend paid.

• Ryder outperformed its benchmark with a pre-tax undiluted NTA return of 15.84% versus 4.25% for the period.

• Interim dividend increased to 4.50 cents per share, fully franked, up 12.5% from 1H FY24, reflecting a steady to increasing dividend policy.

• Distributable profits reserve grew 41.6% to $36.0m, supporting future dividend payments.

Financial highlights

• Total investment income for 1H FY25 was $2.29m, up from $1.54m in 1H FY24.

• Net gain on financial instruments at fair value through profit or loss was $737.8k, up from $133.9k year-over-year.

• Expenses rose to $1.05m from $869k, mainly due to higher management fees from increased net assets.

• Basic and diluted EPS were 1.5 cents, up from 0.98 cents in 1H FY24.

• Cash and cash equivalents at period end were $15.0m, up from $3.95m at 31 Dec 2023.

• Gross portfolio performance for 1H FY25 was 16.80%, outperforming the ASX Small Ordinaries Accumulation Index (5.46%).

Outlook and guidance

• Market outlook is increasingly uncertain due to fluctuating interest rate expectations and potential US policy changes, including inflationary pressures.

• Portfolio strategy is more defensive, with higher cash levels and focus on value stocks with strong balance sheets and regular dividends.