Cadence Capital (CDM) H2 2025 earnings summary

Executive summary

• Profit before tax was $6.2m and profit after tax was $6.3m for FY25, down from $21.6m after tax in FY24.

• Gross fund performance was 3.4% for FY25, underperforming the All Ordinaries Accumulation Index, which rose 13.2%.

• Strong second half performance (+7.3%) partially offset first half underperformance.

• Final dividend of 3.0c per share (50% franked), full year dividend 6.0c per share, yielding 8.8% (10.7% gross).

• On-market buy-back planned for shares issued under the DRP when trading at a discount to NTA.

Financial highlights

• Net asset value at 30 June 2025 was $292.3m, down from $304.1m in 2024.

• Net investments at year-end were $207.0m, down from $246.7m in 2024.

• Basic and diluted EPS were 2.1 cents, down from 7.2 cents in FY24.

• Cash and cash equivalents increased to $83.1m from $65.7m, with bank overdrafts of $49.0m.

• No performance fee was earned by the manager in FY25.

Outlook and guidance

• Global markets face slowing growth, political uncertainty, and central bank policy easing.

• Upside risk to long-term interest rates and inflation is anticipated, with gold equities remaining a core exposure.

• Market volatility expected to provide more trading opportunities.