Hearts and Minds Investments (HM1) H1 2025 earnings summary

Executive summary

• Reported total comprehensive income after tax of $115.3 million for the half year ended 31 December 2024, up from $13.9 million in the prior corresponding period.

• Achieved a pre-tax investment return, less expenses, of 23.6% for the half year, driven by realised gains, strong Core Portfolio performance, and a weaker Australian dollar.

• Post-tax NTA increased by 16.2% over the half year, prior to the payment of a fully franked dividend of 7.5 cents per share in October 2024.

• Share price rose 20% over the half year, with total shareholder return of 23% including dividends.

• Philanthropic donations of $4.5 million paid and $5.6 million accrued to medical research organisations during the period.

Financial highlights

• Net income for the period was $91.95 million, up from $14.55 million in the prior half year.

• Total comprehensive income reached $115.29 million, compared to $13.95 million a year earlier.

• Basic and diluted EPS was 40.15 cents, up from 6.36 cents in the prior period.

• Pre-tax NTA per share increased from $3.05 to $3.47 after dividend payment, a 13.8% rise.

• Since inception in November 2018, annualised investment performance stands at 12.3%.

Outlook and guidance

• Next half-year fully franked dividend of 8.0 cents per share declared, payable on 17 April 2025.

• Board supports increased dividend based on strong investment performance and profit growth.

• Continued focus on delivering both financial and social returns through investment and philanthropy.

• As of 7 February 2025, pre-tax NTA per share was $3.91 and post-tax NTA per share was $3.60.