Aspermont has reported a 6% rise in revenue and a 25% jump in net profit for the half year ending March 2025, yet its net tangible assets per share have declined and dividends remain on hold.
- 6% increase in revenue from continuing operations to A$6.7 million
- 25% growth in net profit after tax from continuing operations
- 46% rise in reported EBITDA
- 27% decline in net tangible asset backing per share
- No dividends declared; dividend reinvestment plan remains suspended
Solid Revenue and Profit Growth
Aspermont, a key player in the media and business information services sector, has released its preliminary financial results for the half year ended 31 March 2025. The company posted a 6% increase in revenue from continuing operations, reaching A$6.724 million. This growth is complemented by a notable 25% increase in net profit after tax from continuing operations, signaling improved operational efficiency and profitability.
EBITDA and Asset Backing Diverge
Reported EBITDA surged by 46%, reflecting stronger earnings before interest, taxes, depreciation, and amortisation. However, this positive earnings momentum contrasts with a 27% decline in net tangible asset (NTA) backing per ordinary share, which fell to 0.34 cents. The drop in NTA per share may raise questions about the company’s asset base and balance sheet strength amid ongoing market challenges.
Dividend Policy Remains Suspended
Despite the improved profitability, Aspermont has not declared any dividends for this period. The dividend reinvestment plan remains suspended, continuing a cautious approach to capital distribution. This decision may reflect the company’s intent to preserve cash or reinvest in growth initiatives, but it could also temper investor enthusiasm seeking income returns.
Broader Revenue Context
Notably, while revenue from continuing operations grew, group revenue including discontinued services declined by 16%. This suggests that the company is streamlining its portfolio, focusing on core operations, but also facing headwinds from segments it has exited or scaled back.
Looking Ahead
Aspermont’s preliminary results paint a picture of a company improving its profitability and operational metrics, yet grappling with asset valuation pressures and a conservative dividend stance. Investors will be keen to see the full financial report and directors’ commentary for deeper insights into strategic priorities and future outlook.
Bottom Line?
Aspermont’s profit gains are promising, but the dividend suspension and asset decline warrant close investor scrutiny.
Questions in the middle?
- What factors contributed to the decline in net tangible assets despite profit growth?
- When might Aspermont consider resuming dividend payments or reinvestment plans?
- How will the company address the revenue decline from discontinued services going forward?