Pacific Current Group (PAC) H2 2024 earnings summary

Executive summary

• FY 2024 was transformational, marked by significant asset sales, externalization of investment management, and a major cost base reduction, resulting in a leaner structure and over 40% decrease in ongoing operating expenses.

• Multiple successful asset sales, including GQG, Pennybacker, Proterra, Avante, Cordillera, Carlisle, and Victory Park, generated proceeds above fair value estimates and significant capital flexibility.

• Underlying NPAT grew 24% and underlying EBITDA rose 18% year-over-year, driven by strong boutique contributions and disciplined expense management.

• Share price appreciated over 40% in FY24, and a final dividend of AUD 0.38 per share was declared (unfranked).

• A substantial off-market, equal access share buyback of up to AUD 300 million is planned, subject to regulatory approval.

Financial highlights

• Net profit after tax swung from a loss of AUD 15.8 million in FY 2023 to a gain of AUD 110 million in FY 2024, driven by asset sale gains.

• Underlying EBITDA grew 18% and underlying NPAT rose 24% year-over-year to AUD 32 million.

• EPS increased to AUD 0.624 per share from AUD 0.508, and a final dividend of AUD 0.38 per share was declared (unfranked).

• Statutory net asset value per share rose 16% to AUD 11.48; fair value estimate per share increased to AUD 13.47.

• Cash and short-term deposits increased significantly due to asset sales, with AUD 318 million surplus cash at year-end.

Outlook and guidance

• FY 2025 results will differ significantly due to asset sales, ongoing transaction settlements, and a lower cost structure.

• Focus areas include capital return, capital flexibility, new growth initiatives, organizational effectiveness, and debt reduction.

• Capital will be allocated to the most accretive uses, including reinvestment, buybacks, dividends, and new growth opportunities.

• No further transactions are currently on the horizon, but opportunistic sales or investments remain possible.

• Remaining boutiques expected to generate meaningful cashflow, with further liquidity events possible.