WAM Strategic Value (WAR) H2 2024 earnings summary

Executive summary

• Record operating profit before tax of $28.7m, up 44.7% year-over-year, and net profit after tax of $22.1m, up 40.1% from FY2023.

• Investment portfolio increased 18.6% for FY2024, with total shareholder return (TSR) of 18.9% including franking credits.

• Fully franked full year dividend increased 50% to 5.25c per share, including a special dividend of 1.0c per share.

• Net tangible asset (NTA) before tax per share rose to $1.29 from $1.17, and share price discount to NTA narrowed to 14.9%.

• Cash weighting in the portfolio reduced to 8.1% from 27.3% as capital was deployed into new opportunities.

Financial highlights

• Revenue from ordinary activities was $38.3m, up 72.5% year-over-year.

• Operating profit before tax: $28.7m (FY2023: $19.8m); net profit after tax: $22.1m (FY2023: $15.8m).

• Earnings per share: 12.28c (FY2023: 8.77c).

• Assets at 30 June 2024: $239.6m; market capitalisation: $197.2m.

• Profits reserve before final and special dividends: 16.9c per share.

Outlook and guidance

• Board remains committed to paying fully franked dividends, subject to profits reserve and franking credits.

• 2.9 years of dividend coverage based on current profits reserve and annualised dividend.

• Company will continue to pursue discounted asset investment strategy and capitalise on market mispricing.