How Did NAOS Ex-50 Achieve a $7.55M Profit and 28.9% Portfolio Return?

Strong Financial Turnaround

NAOS Ex-50 Opportunities Company Limited (ASX, NAC) has delivered a remarkable financial performance for the year ended 30 June 2025. The company reported revenue of $12 million, a 176% increase from the previous year, and a profit after tax of $7.55 million, reversing a loss position in FY24. This turnaround underscores NAC’s successful investment strategy focused on emerging companies in Australia and New Zealand.

The company declared a final quarterly dividend of 1.5 cents per share, 50% franked, continuing its consistent dividend payments for the 11th consecutive year. This dividend policy reflects NAC’s commitment to providing shareholders with a sustainable income stream while maintaining a strong capital base.

Portfolio Outperformance and Key Investments

NAC’s investment portfolio returned 28.92% for FY25, significantly outperforming the S&P/ASX 300 Industrials Accumulation Index by 10%. This performance was driven by NAC’s concentrated exposure to quality emerging companies outside the ASX 50, a strategy that has differentiated it from broader market trends favouring large-cap stocks.

Key portfolio holdings contributing to this success include Urbanise.com, which recently entered a strategic partnership with National Australia Bank to develop integrated strata management payment solutions; COG Financial Services, undergoing a strategic reset with new leadership and a focus on insurance broking growth; XRF Scientific, expanding its global footprint in mining and adjacent industries; MaxiPARTS, capitalising on the ageing vehicle fleet and expanding into European truck parts; and MOVE Logistics, stabilising leadership and benefiting from New Zealand’s economic recovery.

Disciplined Capital Management and Governance

The Board of NAC has maintained a disciplined capital management approach, including on-market share buybacks and a dividend reinvestment plan, supporting shareholder value and liquidity. Directors and key management hold significant shareholdings, reinforcing alignment with investors.

The company’s financial statements were independently audited by Deloitte Touche Tohmatsu, who issued an unqualified opinion, affirming the integrity of NAC’s reported results. The Board continues to uphold high standards of corporate governance, transparency, and ESG integration in its investment process.

Looking Ahead

While NAC’s portfolio has delivered strong returns, the company remains focused on long-term value creation through active engagement with investee companies and selective capital allocation. Upcoming initiatives, such as the Urbanise.com and NAB partnership rollout and strategic developments at COG Financial Services, are poised to drive further growth.

Investors will be watching closely how NAC navigates market volatility and capitalises on emerging opportunities in the Australian and New Zealand mid-cap space.