Mirrabooka Investments (MIR) H2 2024 earnings summary

Executive summary

• Achieved a net profit of AUD 10.7 million for FY2023/24, with a focus on investing outside the top 50 in Australia and New Zealand for returns via fully franked dividends and capital growth.

• Portfolio outperformed benchmarks, delivering a 17.4% total return (including franking), and paid substantial fully franked dividends.

• Over 25 years, $10,000 invested at inception grew to $135,000, significantly outperforming benchmark indices.

• Portfolio activity included significant trimming of top holdings and redeployment into new opportunities.

Financial highlights

• Net profit for the year was AUD 10.7 million, down from AUD 11.3 million the previous year, mainly due to lower trading portfolio gains.

• Options trading contributed an unprecedented AUD 2.5 million to income.

• Realized capital gains after tax totaled AUD 30.8 million, bolstering franking reserves.

• Total dividend for the year is AUD 0.13 per share, including a special dividend of AUD 0.025.

• Management expense ratio (MER) decreased to 0.56% from 0.59% due to portfolio growth.

Outlook and guidance

• Long-term earnings growth outlook for core holdings remains positive, with continued focus on rotating capital into better medium-term value opportunities.

• Macro risks such as inflation, interest rates, and global elections are acknowledged, but confidence remains in the resilience of core portfolio companies.

• Near-term earnings risk from a slowing economy, but moderating global inflation is supportive.