Pacific Current Group (PAC) H1 2025 earnings summary

Executive summary

• Statutory net profit surged to A$100.3M, up from A$11.7M, driven by significant gains on asset sales, while underlying NPAT fell 8% year-over-year to A$15.3M.

• An off-market share buy-back of up to A$300M at A$12 per share was approved, representing nearly 48% of issued capital, with settlement expected by March 2025.

• Major divestments included full exits from Carlisle, Banner Oak, and Nereus, and a partial sale of Victory Park, increasing capital flexibility.

• Corporate costs reduced by 37% following a restructure, with 47% of net assets now held in cash.

• Funds under management declined to $30.0B from $42.5B at 30 June 2024, primarily due to asset manager exits and net outflows.

Financial highlights

• Statutory NPAT attributable to members was A$100.3M, up from A$11.7M, mainly from gains on disposals of VPC, Carlisle, and Banner Oak.

• Underlying NPAT was A$15.3M, down from A$16.7M, reflecting lower boutique contributions after asset realizations.

• Dividend declared at A$0.15 per share (unfranked), matching the prior year’s interim dividend; buy-back participants are eligible.

• Fair value NAV per share at 31 Dec 2024 was A$14.32, exceeding statutory NAV by A$0.48 per share.

• Cash and short-term deposits increased to A$382.4M, with A$300M allocated for the buy-back.

Outlook and guidance

• Focus remains on completing the share buy-back, supporting boutique growth, evaluating new investments, and further reducing corporate costs.

• Plans to pay down outstanding debt and maintain capital discipline.

• Board anticipates a dividend payout ratio of 60–80% of underlying NPAT.

• Outlook assumes flat equity markets and stable currency; growth expectations based on likely boutique allocations.

• Ongoing cost savings and further reductions are targeted, independent of asset footprint.