WAM Strategic Value (WAR) H2 2024 earnings summary

Executive summary

• Achieved record operating profit before tax of $28.7 million for FY2024, up 44.7% year-over-year, and operating profit after tax of $22.1 million, up from $15.8 million in FY2023.

• Investment portfolio performance increased 18.6% for the year ended 30 June 2024, with defensive characteristics and lower volatility than the market.

• Declared a fully franked full year dividend of 5.25 cents per share, a 50% increase over FY2023, plus a special fully franked dividend of 1.0 cent per share.

Financial highlights

• Pre-tax NTA at 30 June 2024 was $1.29 per share; look-through NTA was $1.46 per share.

• Share price at 28 June 2024 was $1.095, with a 14.9% discount to NTA at year-end, narrowing from 16.8% at the start of the year.

• Total shareholder return for the period was 16.9%, or 18.9% including franking credits.

• Profits reserve before payment of final and special dividends stood at 16.9 cents per share.

Outlook and guidance

• Board remains focused on narrowing the share price discount to NTA and believes shares should trade at or above NTA.

• Dividend coverage of 2.9 years based on profits reserve as of 31 July 2024, before payment of final and special dividends.