PM Capital Reports $39.8M Profit, 3% Revenue Growth in H1 FY2025

• 11% increase in profit after tax to $39.8 million for H1 FY2025
• 3% revenue growth to $61.5 million driven by investment gains
• Interim dividend raised to 5.5 cents per share, fully franked
• Net tangible asset backing per share up 4% after tax
• No changes in controlled entities or associates during the period

Robust Financial Performance Amid Market Challenges

PM Capital Global Opportunities Fund Limited (ASX: PGF) has released its half-year results for the period ending 31 December 2024, showcasing a solid financial performance with profit after tax rising 11% to $39.8 million compared to the prior corresponding period. Revenue from ordinary activities increased modestly by 3% to $61.5 million, underpinned by gains on investments despite some foreign exchange losses.

The fund’s concentrated global equity portfolio has evidently weathered ongoing market volatility, delivering consistent capital growth. This performance is reflected in the net tangible asset (NTA) backing per share, which improved by 4% on an after-tax basis (excluding deferred tax assets), reaching $1.9287 as at December 31, 2024.

Dividend Increase Signals Confidence

In line with its strong earnings, the Board declared a fully franked interim dividend of 5.5 cents per share, up from 5.0 cents in the previous half-year. This dividend will be paid on 14 April 2025, with an ex-dividend date of 13 March 2025. The increase underscores management’s confidence in the fund’s ongoing cash flow generation and commitment to returning value to shareholders.

The Dividend Reinvestment Plan (DRP) remains in place, allowing eligible shareholders to reinvest dividends into additional shares without a discount. This offers investors a flexible way to compound their holdings amid a positive growth outlook.

Capital Management and Governance

During the half-year, PM Capital completed a placement and a share purchase plan, raising additional capital to support portfolio expansion. The company’s share count increased to 478.9 million shares as of December 31, 2024, reflecting these capital raising initiatives.

Notably, there were no changes in controlled entities or joint ventures, maintaining a stable corporate structure. The Board welcomed Michael Ryan as an Independent Non-Executive Director in August 2024, enhancing governance oversight.

Outlook and Market Positioning

While the fund’s diversified global portfolio has delivered strong returns, the investment manager remains vigilant to geopolitical and economic uncertainties that could impact markets. The company’s strategy of concentrated, high-conviction investments aims to capture long-term capital growth while managing risk prudently.

Investors will be watching closely how PM Capital navigates the evolving global landscape and whether it can sustain its recent momentum into the second half of FY2025.

Bottom Line?

PM Capital’s solid half-year results and dividend hike reinforce its position as a resilient global investment player, but market headwinds warrant close attention.

Questions in the middle?

• Can PM Capital sustain profit growth amid ongoing global market volatility?
• What impact will currency fluctuations have on future investment returns?
• How will recent capital raises be deployed to enhance portfolio performance?