L1 Long Short Fund (LSF) H2 2024 earnings summary

Executive summary

• Net profit after tax rose 4% to $170.29 million for the year ended 30 June 2024, with profit before tax at $226.98 million, up 1% year-over-year.

• Income from ordinary activities increased 11% to $441.08 million compared to the prior year.

• Net tangible asset (NTA) per share before tax grew 8% to $3.21; after tax NTA was $3.08.

• Fully franked dividends of 5.5c (Oct 2023), 5.75c (Apr 2024), and 6.0c (declared for Oct 2024) per share were paid or declared.

• The investment team delivered strong performance despite market volatility, with notable contributions from select portfolio companies.

Financial highlights

• Revenue from ordinary activities: $441.08 million, up 11% year-over-year.

• Net profit after tax: $170.29 million, up 4% from $163.27 million in FY23.

• Basic and diluted EPS: 27.49 cents, up from 26.60 cents in FY23.

• Net asset value at year-end: $1.92 billion, up from $1.80 billion.

• Management fees: $26.98 million; performance fees: $58.33 million for the year.

Outlook and guidance

• Equity markets are seen as fully priced with narrow leadership; risks include weakening consumer sentiment, geopolitical tensions, and US elections.

• The team continues to seek value in low P/E, cash-generative companies and short opportunities in expensive growth stocks.