London City Investments reports a strong 14.8% increase in net worth for 2025, driven by gains in its investment portfolio and operating profits, outperforming the ASX All Ordinaries Index. The company also realized a significant capital gain from trimming its Fiducian Group shareholding and reinstated its Dividend Reinvestment Plan.
- 14.8% net worth increase for fiscal year 2025
- Capital gain of $11.3 million from reducing Fiducian Group shares
- Outperformance versus ASX All Ordinaries Index’s 9.5% rise
- Ongoing Federal Court litigation involving Excelsior Capital Limited
- Dividend Reinvestment Plan reintroduced immediately
Strong Portfolio Performance Drives Net Worth Growth
London City Investments has delivered a robust financial update for the year ending 30 June 2025, reporting a 14.8% increase in net worth to $24.6 million. This growth notably outpaces the 9.5% rise in the ASX All Ordinaries Index over the same period, highlighting the company’s effective investment strategy and operational execution.
The increase was largely fueled by gains in investment values and operating profits, despite the payment of a higher dividend. Net assets per share rose to 78.6 cents, up from 68.4 cents the previous year, reflecting enhanced shareholder value.
Capitalising on Fiducian Group Holdings
A standout contributor to the gains was London City’s 7% stake in Fiducian Group Limited, which appreciated by an impressive 30.8%. Recognizing that this holding had grown beyond a comfortable weighting, the company strategically reduced its exposure, realizing a capital gain of $11.3 million. This move underscores a disciplined approach to portfolio management, balancing growth with risk control.
Challenges with Excelsior Capital and Legal Proceedings
Not all investments fared as well. London City’s 9% holding in Excelsior Capital Limited, representing a 14% stake, has remained static in value for approximately eighteen months. The company has expressed concern over Excelsior’s unconventional investment focus on unlisted hedge funds, which has not translated into share price appreciation. London City’s ongoing Federal Court action against Excelsior continues, with a trial date set for February. The outcome remains uncertain and represents a notable risk factor.
Dividend Reinvestment Plan Reinstated
In a move likely welcomed by shareholders, the Board has reinstated the Dividend Reinvestment Plan (DRP) with immediate effect. This initiative provides investors with an opportunity to compound their holdings and signals confidence in the company’s future prospects.
Chairman Peter EJ Murray highlighted the company’s solid performance and prudent capital management, while also acknowledging the unpredictable nature of ongoing litigation. The update reflects a company navigating both opportunity and challenge with measured strategy.
Bottom Line?
London City’s strong portfolio gains and strategic capital moves set the stage, but legal uncertainties loom.
Questions in the middle?
- What impact will the Federal Court trial outcome have on London City’s investment valuation?
- How will the reinstated Dividend Reinvestment Plan influence future capital structure and shareholder returns?
- What is the company’s strategy to address the stagnant performance of Excelsior Capital Limited?