Pacific Current Group (PAC) H2 2025 earnings summary

Executive summary

• Completed a substantial AUD 265 million off-market share buyback at AUD 12 per share, reducing issued capital by over 42% and enhancing capital flexibility.

• Statutory net profit for FY 2025 was AUD 58.2 million, down from AUD 110.1 million in FY 2024; underlying net profit declined to AUD 26 million from AUD 32.2 million.

• Dividend per share increased 13% to AUD 0.43 (unfranked), with a final unfranked dividend of AUD 0.28.

• Major asset realisations included exits from Banner Oak, Carlisle, Victory Park Capital, and Nereus, impacting revenue streams.

• Corporate costs reduced by 60% following a restructure and outsourcing of investment management.

Financial highlights

• Underlying EBITDA was AUD 24 million, down from AUD 41.6 million year-over-year.

• Management fee revenue dropped 57.6% due to asset disposals and realisations.

• Statutory net asset value per share was AUD 14.75; fair value net asset value per share increased to AUD 15.51 from AUD 13.47.

• Cash and short-term deposits at period end were AUD 137.9 million after the share buyback.

• Interest income rose to AUD 15.1 million due to higher cash balances post-asset sales.

Outlook and guidance

• Focus for FY 2026 on accelerating growth with existing and new boutique partners, optimizing capital structure, controlling costs, and strengthening the balance sheet.

• Board to review outstanding US debt facility, with a high probability of repayment considered.

• Dividend payout ratio targeted at 60%-80% of underlying profit after tax.

• Capital initiatives to enhance returns and optimise capital structure.

• Assumes flat equity markets and stable currency; growth expectations based on likely boutique allocations through FY26.