Elanor Investors Group (ENN) H2 2024 earnings summary

Executive summary

• Expanded strategic alliance with Rockworth, including a $125 million investment to recapitalise and stabilise the balance sheet, and acquisition of Firmus business, pending regulatory and securityholder approval.

• Unsolicited off-market takeover offer for ECF at $0.70 per stapled security was unanimously recommended for rejection by the ECF Independent Board Committee.

• Continued execution of business stabilisation and asset realisation program to reduce gearing and strengthen the balance sheet.

• Released audited FY24 financial statements, with an emphasis of matter regarding going concern risks if recapitalisation is not executed.

Financial highlights

• FY24 core earnings of $12.8 million (8.55 cents per security), up slightly from $12.5 million in FY23.

• Distributions of 4.9 cents per security, down from 9.13 cents in FY23.

• Funds management income rose 13.5% to $56.2 million year-over-year.

• Funds under management increased to $5.9 billion as of 30 June 2024, up from $3.0 billion.

• Gearing increased to 66.9% at 30 June 2024 from 31.7% a year earlier.

Outlook and guidance

• Focus remains on stabilising the balance sheet and delivering strong investment returns for capital partners.

• Growth strategy to be executed post-stabilisation, leveraging the expanded partnership with Rockworth and acquisition of Firmus.

• Intends to request ASX to lift suspension of securities following completion of recapitalisation and regulatory approvals.