Auctus Reports $4.5M Revenue, $1.7M Profit in Half-Year Turnaround

Strong Financial Turnaround

Auctus Investment Group Limited has delivered a notable financial recovery in the half-year ended 31 December 2024, posting a profit after tax of $1.7 million compared to a loss of $1.2 million in the previous corresponding period. This turnaround is primarily attributed to increased capital raising and transaction fees, reflecting heightened fund-raising activity.

The company’s revenue from ordinary activities surged by $4.8 million to $4.5 million, reversing a prior period loss. Management fees contributed $3.4 million, showing a modest increase of 2.2%, while capital raising and transaction fees combined added $1.1 million, boosted by the launch of the US Opportunities Fund II.

Assets Under Management and Investment Gains

Auctus’s Assets Under Management (AUM) exceeded $550 million by the end of the period, underscoring the company’s successful capital raising efforts and fund establishment. This growth in AUM is a critical metric for the investment management business, signaling increased investor confidence and expanded market reach.

Additionally, the company recorded an unrealised gain of $0.7 million on the fair value of unlisted investments, predominantly linked to its stake in the US Student Housing Growth and Income Fund. This gain enhances the overall asset base and reflects positive valuation trends in select portfolio holdings.

Improved Financial Position and Cash Flow

The company’s net asset position improved to $28.5 million, up from $26.8 million at the previous half-year, supported by profitable operations and increased cash reserves. Cash and cash equivalents rose to $3.9 million, reflecting stronger cash receipts from customers, which climbed to $5.5 million from $4.1 million a year earlier.

Working capital remained stable at $5.1 million, indicating sound liquidity management. Expenditure levels were consistent with prior years, suggesting disciplined cost control amid growth initiatives.

Strategic Outlook

While no dividends were declared during the period, the company’s improved profitability and balance sheet position provide a foundation for future growth and potential shareholder returns. The launch of new funds, such as the US Opportunities Fund II, and ongoing capital raising efforts will be key drivers to watch.

Management’s focus on expanding AUM and enhancing fee income streams aligns with broader industry trends favoring diversified private market investments. However, the company’s performance will remain sensitive to market conditions and investor appetite for private equity and alternative assets.