Teaminvest Private Group Boosts Profit 20% Despite Revenue Dip
Teaminvest Private Group Limited reported a 20.1% rise in half-year profit after tax, even as revenues slipped slightly by 0.9%. The company also declared a steady dividend, signaling confidence amid mixed financial signals.
- Profit after tax increased 20.1% to $2.485 million
- Revenues declined marginally by 0.9% to $54.25 million
- Profit attributable to owners rose 11.2% to $2.284 million
- Declared interim dividend of 1.50 cents per share
- Net tangible assets per share improved to 173.64 cents
Strong Profit Growth Amid Revenue Pressure
Teaminvest Private Group Limited (ASX: TIP) has delivered a robust half-year performance for the period ending 31 December 2024, posting a 20.1% increase in profit after tax to $2.485 million. This growth comes despite a slight 0.9% decline in revenues, which fell to $54.25 million. The divergence between revenue and profit suggests improved operational efficiencies or cost management strategies are at play.
The profit attributable to the owners of TIP rose 11.2% to $2.284 million, reinforcing the company’s ability to convert its earnings into shareholder value. This solid bottom-line growth has underpinned the board’s decision to declare an interim dividend of 1.50 cents per share, maintaining the payout level from previous periods and signaling confidence in ongoing cash flow stability.
Balance Sheet and Asset Quality
Net tangible assets per ordinary security increased to 173.64 cents from 161.55 cents at the previous financial year-end, reflecting a strengthening balance sheet. However, the company’s reported net tangible assets exclude deferred tax liabilities and right-of-use assets and lease liabilities, which remain significant at around $2.2 million and $20 million respectively. These off-balance sheet considerations may influence future capital allocation decisions.
The company’s associates and joint ventures contributed a combined profit share of $1.545 million, a notable increase from $636,000 in the prior comparable period. This suggests that TIP’s strategic investments in entities such as Teaminvest Private Insurance Services and Decoglaze Pty Ltd are beginning to yield stronger returns.
Outlook and Market Implications
While the revenue dip could hint at emerging challenges in the financial services or investment management sectors where TIP operates, the company’s ability to grow profit and maintain dividends points to resilience. CEO Andrew Coleman’s commentary, referenced in the interim report, will be critical for investors seeking insight into operational drivers and future growth strategies.
Investors should watch for how TIP balances growth ambitions with cost discipline, especially as the broader economic environment remains uncertain. The steady dividend reinvestment plan also offers shareholders a mechanism to compound returns, which could be attractive if profit momentum continues.
Bottom Line?
Teaminvest’s profit surge amid revenue softness sets the stage for a cautious yet optimistic next half.
Questions in the middle?
- What factors contributed to the profit growth despite declining revenues?
- How sustainable is the current dividend payout given market conditions?
- What operational changes or cost controls drove improved profitability?
