Imperial Pacific’s Profit Halves to $185K, Dividend Steady at 7 Cents
Imperial Pacific Limited reported a 52% drop in profit for FY2025 but maintained its fully franked dividend, buoyed by robust performance from its associate London City Equities.
- 52% decline in profit after tax to $185,000
- Revenue halved to $371,000 compared to prior year
- Fully franked dividend held steady at 7.00 cents per share
- Net tangible assets per share rose 11% to $2.01
- Strong capital gains from 41% owned associate London City Equities
Imperial Pacific's Financial Snapshot
Imperial Pacific Limited has unveiled its preliminary final results for the year ended 30 June 2025, revealing a mixed performance marked by a significant decline in revenue and profit but underpinned by solid gains from its associate investments. The company’s revenue from ordinary activities dropped by 50% to $371,000, while profit after tax halved to $185,000 compared to the previous year.
Despite these declines, Imperial Pacific declared a fully franked dividend of 7.00 cents per share, unchanged from the prior year, signaling confidence in its ongoing cash flow and capital position. Net tangible assets per share increased by 11% to $2.01, reflecting a strengthening balance sheet.
Associate Performance Drives Portfolio Strength
The standout feature of the year was the performance of London City Equities Limited, an associate company in which Imperial Pacific holds a 41% stake. London City Equities achieved a notable capital gain of $11.3 million by reducing its holding in the Fiducian Group, whose shares appreciated by 30% over the year. This gain significantly contributed to Imperial Pacific’s equity-accounted share of profits, which swung from a small loss in the prior year to a $205,000 profit.
London City’s portfolio reached $27 million by year-end, with a substantial 40% held in cash and liquid assets, indicating a cautious but opportunistic investment stance. However, not all holdings performed equally; a 9.1% stake in Excelsior Capital remained flat despite broader market gains, and Imperial Pacific supports London City’s ongoing Federal Court action against Excelsior and its associates.
Balance Sheet and Cash Flow Highlights
Imperial Pacific’s balance sheet remains robust, with net assets of approximately $10.7 million and cash balances more than doubling to $53 million. The company reported net cash inflows from operating activities of $632,000, a significant improvement over the previous year. The board noted a further $350,000 increase in portfolio values since the balance date, suggesting positive momentum heading into the new financial year.
The company continues to maintain a conservative capital management approach, with no external borrowings and a focus on delivering steady, fully franked dividends. The dividend reinvestment plan remains active, providing shareholders with flexible options for participation.
Outlook and Governance
Imperial Pacific’s directors remain cautiously optimistic, emphasizing the near-record levels of investment portfolio gains and revenue increases despite the challenging market environment. The accounts are currently subject to audit, with no disputes noted, and the company plans to hold its Annual General Meeting on 22 October 2025.
Governance remains tight, with experienced directors overseeing risk management and portfolio strategy. The company’s exposure to market risk is mitigated through prudent investment guidelines and a diversified portfolio, while liquidity and credit risks are carefully managed.
Bottom Line?
Imperial Pacific’s resilience amid profit pressures hinges on its associate’s gains and disciplined capital management, setting the stage for a closely watched recovery.
Questions in the middle?
- How will the ongoing Federal Court action involving Excelsior Capital impact future returns?
- Can London City Equities sustain its recent capital gains momentum in a volatile market?
- Will Imperial Pacific maintain its dividend policy if profit pressures persist?
