Cadence Capital (CDM) H2 2024 earnings summary

Executive summary

• Profit before tax of $27.7m and profit after tax of $21.6m, reversing prior year losses.

• Gross fund performance up 10.4% for FY24, with strong returns from Meta Platforms, Alumina, Netflix, and resource companies.

• Fully franked final dividend of 3.0c per share, bringing the full year to 6.0c per share.

• Dividend reinvestment plan (DRP) in operation; on-market buy-back planned for shares issued under DRP when trading at a discount to NTA.

Financial highlights

• Net asset value at 30 June 2024 was $304.1m, up from $300.1m in 2023.

• Net investments valued at $246.7m, up from $122.4m in 2023.

• Basic and diluted EPS of 7.2 cents, compared to (2.6) cents last year.

• Total dividends paid in FY24 were $17.9m, with an annualised yield of 8.6% fully franked (12.2% gross).

• Cash and cash equivalents at year-end were $14.9m, down from $132.1m, reflecting increased investment activity and dividend payments.

Outlook and guidance

• Management expects continued market volatility due to global economic concerns and interest rate trends.

• Cash levels were increased in July 2024 to position for market falls; focus remains on disciplined investment process.