MFF Capital Investments (MFF) H2 2024 earnings summary

Executive summary

• Net profit after tax rose 38% to $447.4m for FY2024, driven by mark-to-market gains on investments and strong portfolio performance.

• Pre-tax profit increased to $639.1m, with net assets up 23% to $2,071.0m as of 30 June 2024.

• Fully franked final dividend of 7.0c per share declared, with intention to increase six-monthly dividend to 8.0c per share for the period ending 31 Dec 2024.

• Portfolio remains concentrated in highly liquid, competitively advantaged global companies, with no new company purchases or material sales during the year.

• On-market buy-back of 5.98m shares at a cost of $17.5m completed during the year.

Financial highlights

• Total net investment income rose 38% to $666.6m, with net profit after tax up 38% year-over-year.

• Basic EPS increased to 77.35c (FY2023: 55.34c).

• Pre-tax NTA per share was $4.284 (up from $3.398), post-tax NTA per share $3.574 (up from $2.909).

• Dividend and distribution income received increased by $9.6m to $38.8m.

• Operating expenses (excl. interest and tax) reduced to $4.2m from $5.6m.

Outlook and guidance

• Directors intend to increase the six-monthly dividend to 8.0c per share for the period ending 31 Dec 2024, subject to relevant considerations.

• Company remains focused on maximizing compound, risk-adjusted after-tax returns and minimizing permanent capital loss.

• No detailed forward-looking statement provided due to market and currency fluctuations.