Australian United Investment Company (AUI) H2 2024 earnings summary

Executive summary

• Statutory profit after tax for FY2024 was $49.1 million, down 12.9% from $56.4 million in FY2023, with revenue falling 10.4% and net profit after tax (excluding special income) down 13.4%.

• The company maintained a diversified Australian equities portfolio, with 66.6% in ASX 20 stocks and 61% of holdings held for over 10 years.

• Accumulation performance of pre-tax NTA backing rose 14.2%, outperforming the S&P/ASX 200 Accumulation Index's 12.1% increase.

• Ordinary dividends per share remained steady at 37.0 cents, with a special dividend of 8.0 cents declared for FY2024.

• The company expects to maintain steady ordinary dividends and special dividends of 8 cents per share annually for the next five years, distributing accumulated franking credits.

Financial highlights

• Revenue from the investment portfolio was $57.8 million, down from $63.8 million in FY2023.

• Earnings per share (excluding special income) was 37.9 cents, down from 43.8 cents; including special income, EPS was 39.0 cents (FY2023: 44.7 cents).

• Pre-tax NTA per share at 30 June 2024 was $11.74, up from $10.63 a year earlier.

• Net assets increased to $1,206.7 million from $1,135.7 million.

• On-market buyback of 2.73 million shares at a cost of $28.1 million was completed.

Outlook and guidance

• The company remains cautious on the short-term market outlook due to high valuations and global uncertainties.

• Expects a slow-growing Australian economy, with interest rates likely to have peaked and remain stable for the calendar year.

• Anticipates lower dividends from key holdings (BHP, Rio Tinto, Woodside) in the coming year.

• Plans to maintain steady ordinary dividends and annual special dividends of 8 cents per share for at least five years, subject to unforeseen circumstances.