E&P Financial Group (EP1) H1 2025 earnings summary

Executive summary

• Net revenue rose 15% year-over-year to $77.9 million for 1H25, with strong contributions from E & P Wealth and E & P Capital.

• Statutory NPAT returned to profit at $1.4 million, reversing a prior year loss of $26.3 million, driven by revenue and earnings growth in Wealth and Capital segments, and disciplined expense management.

• Pre-AASB 16 Underlying EBITDA increased to $4.0 million, up materially from 1H24, reflecting operational improvements and cost discipline.

• Delisted from the ASX on 27 December 2024 following shareholder approval and completed a significant share buy-back as part of the process.

• No interim or final dividend declared or paid for FY24 or FY23 due to debt facility restrictions.

Financial highlights

• Total revenue increased to $82.96 million for the half-year ended 31 December 2024, up from $72.32 million in the prior corresponding period.

• Pre-AASB 16 Underlying EBITDA improved to $4.0 million from a loss of $8.1 million in 1H24.

• Underlying NPATA rose to $2.4 million, a material increase from 1H24.

• Operating expenses decreased 12% year-over-year, reflecting cost savings from discontinued strategies.

• Cash position at $41.1 million, down from $48.9 million at June 2024, mainly due to annual bonus payments.

Outlook and guidance

• Focus for 2025 is on accelerating profit growth, client and revenue expansion in E & P Wealth, and recommencing shareholder distributions.

• E & P Wealth targets new client and adviser growth; E & P Capital aims to expand institutional trading and fixed income market share; E & P Funds focuses on external client growth for Claremont Global.

• Management expects solid performance in E & P Capital for the second half of FY25, with continued momentum in institutional business and capital markets activity.

• Revenue trends from 1H25 have continued into the first two months of CY2025.

• Plans to refinance or repay short-term debt and facilitate liquidity in an unlisted environment.