Ryder Capital (RYD) H2 2024 earnings summary

Executive summary

• Achieved a pre-tax NTA gain of 25.15% for FY24, outperforming all comparable ASX equity indices and reversing two years of underperformance.

• Total comprehensive income after tax was $18.1m, a significant turnaround from the prior year's $6.9m loss.

• Share price increased from $0.965 to $1.125, with a total shareholder return of 25.13% (excluding franking), maintaining a ~19% discount to NTA.

• Final fully franked dividend increased to 5.0 cents per share, bringing the annual dividend to 9.0 cents per share.

• Strategic review concluded with no immediate restructuring, but ongoing focus on addressing share price discount to NTA and liquidity.

Financial highlights

• Revenue from ordinary activities rose 18% to $3.7m compared to FY23.

• Profit before tax attributable to members increased 60% to $1.89m; profit after tax up 34% to $2.03m.

• Net asset value at 30 June 2024 was $114.3m, up from $104.6m a year earlier.

• Pre-tax NTA per share increased to $1.3875 from $1.1865, after paying 8.25 cents per share in dividends.

• Cash and cash equivalents at year-end were $1.8m, down from $9.8m, reflecting active capital deployment.

Outlook and guidance

• Portfolio well positioned for FY25, with core holdings seen as undervalued and strong balance sheets.

• Board expects to continue paying steady to increasing fully franked dividends, supported by $0.31 per share in distributable profits.

• Management remains cautious amid global economic uncertainty and high interest rates, but sees opportunity in small caps.