NGE Capital Limited reported a steady half-year profit increase alongside a notable rise in net tangible assets per share, continuing its share buy-back program and initiating new investments.
- Profit after tax rises 3.2% to $4.63 million
- Revenue increases 3.1% to $5.294 million
- Net tangible assets per share up 10.4% to $1.422
- Continued on-market share buy-back with 1.13 million shares repurchased
- New portfolio position initiated post-period with $2.7 million investment
Steady Profit Growth Amid Market Uncertainty
NGE Capital Limited has released its interim financial results for the half-year ended 30 June 2025, reporting a profit after tax of $4.63 million. This marks a 3.2% increase compared to the same period last year, reflecting the company’s consistent performance in a challenging investment environment.
Revenue from ordinary activities also edged up by 3.1% to $5.294 million, underpinned by the company’s focused investment strategy and disciplined portfolio management. Despite no dividends being declared during the period, NGE’s financial health appears robust, supported by a 10.4% rise in net tangible assets (NTA) per share to $1.422.
Capital Management and Share Buy-Backs
Continuing its capital management initiatives, NGE repurchased approximately 1.13 million shares at a cost of $1.161 million during the half-year. This ongoing on-market share buy-back program, which has been in place since 2017, reflects the board’s confidence in the intrinsic value of the company and its commitment to enhancing shareholder returns.
The company’s net assets increased by $3.469 million to $52.458 million, driven largely by gains in its investment portfolio. Listed equity securities, valued at $44.189 million as of 30 June 2025, represent the core of NGE’s holdings, highlighting its concentrated, high-conviction investment approach.
Strategic Investment Moves Post-Reporting Period
In a notable development after the reporting period, NGE initiated a new portfolio position by acquiring shares in an ASX-listed company, investing $2.711 million from cash reserves. This move signals an active management stance and a readiness to capitalize on compelling opportunities as they arise. The company has indicated it may increase its stake subject to market conditions and further evaluation.
Importantly, the interim financial statements were independently reviewed by Grant Thornton Audit Pty Ltd, with no issues raised, lending credibility to the reported figures and disclosures.
Tax Position and Deferred Assets
NGE recognized a deferred tax asset of $3.66 million related to unused Australian tax losses, reflecting prudent tax management and the expectation of future taxable profits. While this asset enhances the company’s balance sheet, its realization depends on sustained profitability and compliance with tax regulations.
Overall, NGE Capital’s half-year results portray a company maintaining steady growth, disciplined capital allocation, and strategic agility in its investment portfolio.
Bottom Line?
NGE Capital’s steady growth and active portfolio moves set the stage for investors to watch its next strategic steps closely.
Questions in the middle?
- What sectors or companies comprise the new portfolio position initiated post-period?
- Will NGE Capital consider declaring dividends given the improved profitability and NTA growth?
- How might market volatility impact the valuation of NGE’s concentrated investment portfolio going forward?