Microequities Posts 19% NPAT Growth, 222% Surge in Performance Fees
Microequities Asset Management Group reported a robust FY25 with significant profit growth and a new private credit product launch, signaling a strategic diversification and positive outlook for FY26.
- NPAT increased 19% to $7.1 million
- Operating profit surged 39% to $10.4 million
- Performance fee income jumped 222% to $3.7 million
- Final dividend raised to 2.0 cents per share, fully franked
- Launch of fully subscribed corporate private credit SPV in early FY26
Strong Financial Performance Amid Sector Challenges
Microequities Asset Management Group Limited has delivered a solid set of financial results for FY25, demonstrating resilience in a challenging asset management environment. Despite weak inflows across the broader sector, the company managed to grow its net profit after tax (NPAT) by 19% to $7.1 million and operating profit by an impressive 39% to $10.4 million. This performance was underpinned by strong investment returns that helped maintain funds under management (FUM) levels, supporting a 5% rise in recurring revenue to $10.8 million.
Performance Fees Drive Earnings Growth
A standout feature of Microequities’ FY25 results was the dramatic 222% increase in performance fee income, which climbed to $3.7 million. This surge reflects the company’s ability to generate superior returns for its clients, a critical factor in an industry where performance fees can significantly boost profitability. The improved operating efficiency is also notable, with operating expenses relative to recurring revenue improving by 131 basis points, indicating tighter cost control alongside revenue growth.
Dividend Increase Signals Confidence
Reflecting its strong balance sheet and profitability, Microequities’ board declared a fully franked final dividend of 2.0 cents per share, lifting the total dividend for FY25 to 3.9 cents per share. This increase signals management’s confidence in the company’s ongoing earnings power and commitment to returning value to shareholders.
Strategic Diversification with Private Credit Launch
Looking ahead, Microequities has taken a significant step in diversifying its product offering with the launch of its first corporate private credit special purpose vehicle (SPV) early in FY26. The SPV was fully subscribed within six days, underscoring strong investor appetite for alternative income streams. This new product expands Microequities’ reach beyond its traditional focus on listed small and microcap industrial companies, offering clients attractive risk-adjusted returns in a growing segment of the market.
Positive Outlook Supported by Venture Capital and Growth Portfolios
Further diversification comes from the Microequities Venture Capital Fund, which has begun delivering performance carry fees and is expected to contribute additional income in FY26. The company’s portfolio includes assets with substantial growth potential and valuation uplifts, providing a solid foundation for future funds under management growth and performance fees. CEO Carlos Gil highlighted the company’s strategic progress and thanked clients, shareholders, and staff for their ongoing support.
Bottom Line?
Microequities’ FY25 results and strategic initiatives set the stage for a potentially strong FY26, with diversification and performance fees key to watch.
Questions in the middle?
- How will the new private credit SPV impact Microequities’ revenue mix and risk profile over the next year?
- What are the growth prospects and expected performance fee contributions from the Venture Capital Fund in FY26?
- Can Microequities sustain its strong operating profit growth amid broader sector inflow challenges?
