Plato Income Maximiser (PL8) H2 2024 earnings summary

Executive summary

• FY24 operating profit after tax reached $65.9 million, an increase of $8.5 million compared to FY23.

• Portfolio delivered a total return of 13.6% (including franking) for the twelve months to June, matching the market and supporting strong profit reserves for distributions.

• Distributed income yield for FY24 was 7.8%, exceeding the benchmark by 2.6%.

• Total dividends paid in FY24 amounted to $0.066 per share, delivered via six consecutive monthly payments.

• Share price has consistently traded at a premium to pre-tax NTA since listing, reflecting strong investor demand and confidence.

Financial highlights

• For the year to July, total portfolio return was 15.2% versus 15% for the benchmark, with income of 7.8% outpacing the benchmark by 2.7%.

• Pre-tax NTA per share decreased from $1.20 to $1.082 over FY24, after accounting for portfolio performance, expenses, dividends, and SPP dilution.

• Portfolio performance contributed $0.112 per share, while dividends paid reduced NTA by $0.066 per share.

• Since inception, annual income performance has exceeded the benchmark by 2.3%, with total return slightly ahead of the benchmark at 10.1%.

• Monthly income distributions have been steady for over two years, with future payments at the same level already committed.

Outlook and guidance

• Dividend outlook is stable, with the probability of dividend cuts returning to long-term averages after a brief uptick.

• Management remains cautiously optimistic, noting strong dividends and the importance of active management to avoid dividend traps.

• Dividend growth depends on a rebound in the Australian economy and higher market-level dividends, with potential improvement if interest rates are cut in 2025.

• Special dividends and higher payout ratios may supplement income if off-market buybacks remain restricted.