Sandon Capital Investments Limited reported a robust FY25 with a 28.2% total shareholder return, driven by a 32.2% gross portfolio gain and a $24.65 million net profit. The company also announced a fully franked quarterly dividend, underscoring its commitment to shareholder income.
- Revenue surged 79% to $37.08 million
- Net profit after tax rose 72% to $24.65 million
- Gross portfolio return of 32.2%, outperforming market indices
- Quarterly fully franked dividend of 1.4 cents per share declared
- Completed compulsory acquisition of 93% of Carbon Conscious Investments Ltd
Strong Financial Performance
Sandon Capital Investments Limited (ASX – SNC) has delivered a standout financial year ending 30 June 2025, posting a net profit after tax of $24.65 million, up 72% from the previous year. Revenue from ordinary activities climbed 79% to $37.08 million, reflecting both realised and unrealised gains alongside dividend income.
The company’s net tangible asset (NTA) per share before tax increased significantly to 95.98 cents, up from 80.67 cents in FY24, signaling solid capital growth. This translated into a total shareholder return of 28.2%, comfortably outperforming key market indices.
Portfolio Outperformance and Key Contributors
The investment portfolio generated a gross return of 32.2%, well ahead of the All Ordinaries and Small Ordinaries indices, which returned 13.2% and 12.3% respectively. This outperformance was driven by strong gains in key holdings such as Fleetwood Ltd, COG Financial Services Ltd, Wellard Ltd, Carbon Conscious Investments Ltd (CCIL), and BCI Minerals Ltd.
Fleetwood Ltd saw a successful turnaround with its share price rising from $1.49 to $2.46, supported by robust profit growth and cash flow improvements. COG Financial Services benefited from board renewal and strategic divestments, with its share price climbing from $1.11 to $1.72. Wellard Ltd capitalised on asset sales at significant premiums, returning capital to shareholders. BCI Minerals advanced its flagship Mardie salt project, now over two-thirds complete, with first revenue expected in late 2026.
Notably, Sandon Capital completed a compulsory acquisition of 93% of CCIL shares, consolidating its control and reflecting confidence in the company’s cost reductions and premium carbon credit sales.
Dividend Policy and Capital Management
In line with its commitment to shareholder returns, Sandon Capital declared a fully franked quarterly dividend of 1.4 cents per share for September 2025, continuing its transition to quarterly payments initiated in December 2024. The Dividend Reinvestment Plan (DRP) remains available with no discount, providing shareholders flexible options to increase their holdings.
The company maintains strong profit reserves of 40.78 cents per share and franking credits of 7.50 cents per share, supporting the potential for sustained dividend payments. Leverage remains conservative, with unsecured notes maturing in 2026 and a prime broker facility in place, capped at 50% of total assets.
Governance and Outlook
The Board, led by Chairman Gabriel Radzyminski, remains unchanged and focused on value investing with an activist approach, seeking to unlock intrinsic value in portfolio companies. The company’s investment strategy balances capital preservation with medium-term absolute returns and a growing stream of fully franked dividends.
While geopolitical risks and market volatility persist, the recent easing of interest rates provides a supportive backdrop for asset valuations. Sandon Capital views the current environment as fertile ground for disciplined investment opportunities, with a cautious but optimistic outlook for FY26.
The company’s audit by Pitcher Partners Sydney was unqualified, confirming the accuracy of financial statements and fee calculations, reinforcing investor confidence in governance and transparency.
Bottom Line?
Sandon Capital’s strong FY25 results and dividend growth set the stage for continued value creation amid evolving market conditions.
Questions in the middle?
- How will Sandon Capital navigate portfolio company earnings as more full-year results are released?
- What is the expected impact of geopolitical risks on the company’s activist investment strategy?
- Will the Board consider increasing dividend payouts beyond the current quarterly rate given strong reserves?