L1 Long Short Fund (LSF) H2 2025 earnings summary

Executive summary

• Achieved an absolute return of 7.2% for the year ended 30 June 2025, underperforming the ASX200AI's 13.8% but maintaining a strong 5-year annualized return of 21.0% and since-inception return of 11.0% p.a.

• Navigated challenging global markets with style headwinds, macro uncertainty, and sector volatility, with strong stock selection in infrastructure, building materials, and UK equities offsetting energy sector weakness.

• Continued regular, growing fully franked dividends, with a total of 12.75 cents per share paid for FY2025.

• Senior management increased their investment in the fund, reinforcing alignment with shareholders.

Financial highlights

• Net profit after tax was $99.52 million, down from $170.29 million in FY2024.

• Operating profit before tax was $130.17 million, compared to $226.98 million in the prior year.

• Net tangible asset backing before tax as at 30 June 2025 was $3.2473 per share (2024: $3.2064).

• Net asset value at year-end was $1,963.61 million (2024: $1,921.90 million).

• Basic and diluted EPS were 15.91 cents, down from 27.49 cents in FY2024.

Outlook and guidance

• Portfolio remains resilient and well-positioned for future opportunities, with confidence in delivering attractive returns.

• The company will continue to pursue its investment objectives, with results dependent on market performance.