Legal Risks Loom as Imperial Pacific Posts Strong Investment Gains

Strong Investment Performance Drives Growth

Imperial Pacific Limited has delivered a robust financial update for the year ending 30 June 2025, with its unaudited results showing a 14.4% increase in net worth to $10.6 million. This growth was primarily driven by strong gains in the company’s investment portfolio, reflecting a positive year for its asset management strategy.

The company’s balance sheet reveals a healthy increase in shareholders’ equity, rising from $9.58 million in 2024 to $10.64 million in 2025. Net assets per share improved from $1.80 to $1.99, signaling enhanced value for shareholders despite no change in the number of shares on issue.

Associate Company Outperforms Market Benchmarks

Imperial Pacific’s 40% owned associate, London City Equities Limited, also reported a strong year with a 14.8% increase in net worth, outperforming the broader All Ordinaries index which rose 9.5%. A key contributor to this performance was London City’s long-term investment in Fiducian Group Limited, which was partially realised, generating a substantial gain exceeding $11 million.

Mixed Results and Legal Challenges

However, not all investments fared well. The company’s stake in Excelsior Capital Limited, representing 2% directly and 14% within an associated group, remained largely static following the sale of Excelsior’s main business eighteen months ago. Compounding concerns, ongoing litigation involving Excelsior and two of its directors is scheduled for trial next February, introducing an element of uncertainty to this holding.

Strategic Dividend Move

In a move likely to appeal to income-focused investors, Imperial Pacific’s board has reinstated its Dividend Reinvestment Plan (DRP) with immediate effect. This decision signals confidence in the company’s future prospects and offers shareholders an opportunity to compound their investment by reinvesting dividends into additional shares.

While the results are currently unaudited and subject to final verification, the update paints a picture of a company capitalising on its investment strengths while navigating challenges in select holdings. The reinstatement of the DRP may also be viewed as a strategic step to support shareholder engagement and capital growth.