Profit Falls 24%, But Perpetual Equity Keeps Dividend Steady—What’s Next?
Perpetual Equity Investment Company Limited has reported a 23.9% decline in net profit for FY25, yet continues to offer shareholders a fully franked 4.0 cent dividend supported by a no-discount Dividend Reinvestment Plan.
- Net profit down 23.9% to $21.7 million
- Revenue declined 25.3% to $32.6 million
- Final dividend maintained at 4.0 cents per share, fully franked
- Dividend Reinvestment Plan operates with no discount
- Net tangible assets per share stand at $1.248
Financial Performance Overview
Perpetual Equity Investment Company Limited has released its audited financial results for the year ended 30 June 2025, revealing a notable contraction in profitability and revenue. The company’s net profit attributable to equity holders fell by 23.9% to $21.7 million, while revenue declined by 25.3% to $32.6 million. This downturn reflects a challenging market environment that has impacted investment returns over the past year.
Dividend Policy and Shareholder Returns
Despite the profit decline, Perpetual Equity has maintained its commitment to shareholder returns by declaring a final dividend of 4.0 cents per share, fully franked at a 30% tax rate. This matches the interim dividend paid earlier in the year, signaling the board’s confidence in sustaining income distributions. The ex-dividend date is set for 10 September 2025, with payment scheduled for 3 October 2025.
Dividend Reinvestment Plan Details
The company’s Dividend Reinvestment Plan (DRP) will operate without a discount on the allocation price, encouraging shareholders to reinvest dividends at fair market value. The pricing period for the DRP shares will span five trading days from 15 to 19 September 2025. Shares issued under the DRP will rank equally with existing shares, preserving shareholder equity.
Balance Sheet Strength
Perpetual Equity’s net tangible assets per share stood at $1.248 as of 30 June 2025, providing a solid asset backing despite the profit pressures. This metric remains a key indicator for investors assessing the company’s intrinsic value and capital stability.
Looking Ahead
While the results highlight a period of subdued earnings, the company’s steady dividend and robust net tangible asset position suggest resilience. Investors will be watching closely for any strategic updates or market shifts that could influence future performance and income streams.
Bottom Line?
Perpetual Equity’s steady dividend amid profit pressures sets the stage for cautious optimism in FY26.
Questions in the middle?
- What factors contributed most to the 25% revenue decline this year?
- Will the company adjust its dividend policy if market conditions remain challenging?
- How might Perpetual Equity reposition its portfolio to drive growth going forward?
