Plato Income Maximiser (PL8) H1 2025 earnings summary

Executive summary

• Net profit after tax for the half-year ended 31 December 2024 was $39.7 million, nearly unchanged from the prior period, with operating profit up $0.1 million from 1HFY24.

• Portfolio delivered a total return of 7.1% for the half-year, slightly underperforming the benchmark by 0.5%.

• The company maintained its strategy of providing high, regular, fully-franked monthly dividends, with $0.0055 per share paid each month since mid-2022.

• Distributed income for the half-year was 3.8%, annualised to 7.6%, outperforming the benchmark by 1.4%.

• Shares have consistently traded at a premium to net tangible assets since listing, reflecting strong demand for income-focused investments.

Financial highlights

• Total investment income for the half-year was $51.3 million, up from $49.8 million year-over-year.

• Pre-tax NTA per share decreased from $1.113 to $1.082 after accounting for performance, expenses, and dividends.

• Fully-franked dividends paid totaled $24.7 million for the half-year, up from $21.5 million year-over-year.

• 12-month realised yield was 7.7%, with franking credits contributing 1.2%.

• Share price has consistently traded at a premium to pre-tax NTA since listing.

Outlook and guidance

• Dividend outlook remains stable and within the long-term average, with no significant cuts or increases expected.

• Three additional fully-franked monthly dividends of $0.0055 per share have been resolved for January, February, and March 2025.

• Active fund management is emphasized as critical for income delivery and avoiding dividend traps.

• Interest rate cuts are expected to reduce term deposit income, making equity income more attractive.