Plato Income Maximiser (PL8) H2 2024 earnings summary

Executive summary

• FY24 operating profit after tax reached $65.9 million, up $8.5 million from FY23, driven by strong share market performance.

• Total portfolio return for FY24 was 13.6%, matching the benchmark and maintaining a positive track record since inception.

• Distributed income yield for the year was 7.8%, outperforming the benchmark by up to 2.7%.

• Monthly fully franked dividends of $0.0055 per share have been consistently paid since October 2017, maintaining the highest monthly dividend level since IPO.

• Net tangible assets (NTA) per share increased from $1.04 to $1.08 over the year, with the share price trading at a premium to NTA.

Financial highlights

• FY24 profit after tax: $65.9 million, up from $57.4 million in FY23.

• Total dividends paid in FY24 amounted to $0.066 per share, representing a 7.8% annualised distributed yield.

• Pre-tax NTA per share increased from $1.040 to $1.082 during FY24, after paying $0.066 in fully franked dividends.

• Net assets at 30 June 2024 stood at $822.3 million.

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

Outlook and guidance

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

• 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.

• Portfolio remains actively positioned to seek superior income versus the benchmark, with expectations for a continued solid dividend environment in FY25.

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

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