WAM Capital (WAM) investor relations material

Executive summary

• Interim results for four managed funds were presented, highlighting a challenging environment for small caps since October due to macroeconomic and geopolitical factors, with WAM Capital, WAM Microcap, and WAM Research in focus.

• Operating profit before tax was $30.2 million, down from $208.7 million in the prior year period, and after-tax profit was $24.1 million versus $149.8 million year-over-year.

• Investment portfolio increased 2.0% over six months, underperforming the S&P/ASX All Ordinaries Accumulation Index (4.4%) and S&P/ASX Small Ordinaries Accumulation Index (17.4%).

• Total shareholder return (TSR) was 22.6% for the half year, driven by share price premium to NTA and franked dividends.

• Despite market headwinds, management remains optimistic about long-term opportunities, citing strong company fundamentals and balance sheets.

Financial highlights

• WAM Active outperformed strongly, aided by resource sector exposure and recent capital raising.

• Net realised and unrealised gains on investments were $26.6 million, down from $224.5 million year-over-year.

• Earnings per share were 2.13 cents, compared to 13.43 cents in the prior year period.

• Cash and cash equivalents increased to $205.4 million from $167.8 million at June 2025.

• Net assets at period end were $1.82 billion, down from $1.88 billion at June 2025.

Outlook and guidance

• Interim dividend of 7.75 cents per share, partially franked at 60%, declared for payment in May 2026.

• Board expects to maintain the final dividend at 7.75 cents per share, also partially franked at 60%, subject to tax paid on realised profits.

• Management expects the current premium to NTA to persist until the next dividend, with potential for contraction thereafter.

• Valuations are seen as highly depressed, presenting significant investment opportunities once market stability returns.

• The investment process is expected to drive outperformance when market conditions normalize.