Sandon Capital Investments (SNC) H1 2025 earnings summary

Executive summary

• Net profit after tax for the half year ended 31 December 2024 was $16,777,695, up from $14,854,666 in the prior corresponding period, driven by a 17.7% gross portfolio return, more than double the All Ordinaries Accumulation Index return.

• Total income rose to $22,967,531 from $20,661,621 year-over-year, driven by net realised and unrealised gains and other revenue.

• Return to shareholders for the six-month period was 18.4%, including dividends and NTA growth.

• Completed compulsory acquisition of Carbon Conscious Investments Ltd (CCIL), now 90% owned by SNC and 10% by SCAF.

• Announced transition to quarterly fully franked dividends, with an increase in annualised dividend to 5.6 cents per share and the first payment scheduled for March 2025.

Financial highlights

• Net realised gains of $2,061,266 (prior period: loss of $22,775,520); unrealised gains of $13,418,925 (prior: $11,580,848).

• Portfolio return for the six months was 17.7%, compared to 6.9% for the All Ordinaries Accumulation Index and 5.5% for the Small Ordinaries Accumulation Index.

• Basic and diluted EPS was 11.73 cents per share, up from 10.64 cents per share year-over-year.

• Shares offer a fully franked dividend yield of 6.8% (9.0% including franking credits), trading at a 9.4% discount to pre-tax NTA.

• Total dividends paid during the period were $3,922,143, with a fully franked final dividend of 2.75 cents per share paid in November 2024.

Outlook and guidance

• Board intends to pay a quarterly fully franked dividend of 1.4 cents per share on 7 March 2025, with DRP applying and no discount.

• Management remains confident in future returns, citing diligent application of their investment approach and signs of increasing corporate and private market investor confidence.

• Considering new investment opportunities and continuing to encourage portfolio companies to improve.