Mirrabooka Investments (MIR) H2 2025 earnings summary

Executive summary

• Full-year profit declined to $7.9 million from $10.7 million, mainly due to lower dividend and option income, and absence of prior year trading gains.

• Portfolio delivered an 11.4% total return (including franking), underperforming the 15.2% return of the S&P/ASX Mid Cap 50 and Small Ordinaries Accumulation Indices.

• Successfully raised $85.1 million in new capital via a one-for-seven rights issue, with 119% take-up, increasing cash reserves and shareholder participation; shares now trade above the offer price.

• Focused on investing in small and medium-sized companies in Australia and New Zealand for medium to long-term gains and attractive fully franked dividends.

Financial highlights

• Management expense ratio improved to 0.54% from 0.56%.

• Ordinary dividend maintained at $0.065 per share, with total fully franked dividend for FY25 at 11.0 cents per share; new shares from the rights issue eligible.

• Portfolio return of 11.4% compared to 15.2% benchmark; previous year saw 17.4% return vs. 8.7% benchmark.

• FY25 profit was $7.9 million, down from $10.7 million in FY24.

Outlook and guidance

• Entering the new financial year with 11% of the portfolio in cash, maintaining a patient and disciplined investment approach.

• Management remains focused on long-term investment discipline, emphasizing patience and selectivity in new investments.

• Confident in uncovering new investment opportunities, especially amid market volatility.

• Market volatility is expected to persist, but the company is well-positioned to capitalize on future opportunities.