Hearts and Minds Investments (HM1) H2 2024 earnings summary

Executive summary

• Investment portfolio delivered an 11.7% return for FY24, with improved performance following management changes 18 months ago.

• Total comprehensive income after tax was $53.5 million for FY24, down from $63.0 million in FY23.

• Share price rose from $2.26 to $2.58, narrowing the discount to NTA and resulting in a 20% total shareholder return for FY24.

• Fully franked dividends paid amounted to 14 cents per share, with an increased half-yearly dividend of 7.5 cents declared for October 2024.

• $9.4 million paid and $6.4 million provisioned for medical research funding in FY24.

Financial highlights

• Investment portfolio up 11.7% for FY24; compound pre-tax return since inception is 9.3% per annum.

• Total comprehensive income after tax was $53.5 million for FY24.

• Fully franked dividend yield of 5.8% (grossed up 8.3%) on 30 June 2024 share price.

• Total shareholder return for FY24 was 20%.

Outlook and guidance

• Board remains confident that improved investment performance will continue to narrow the share price discount to NTA.

• Ongoing commitment to pay fully franked dividends twice yearly, subject to cash reserves and franking credits.