Clime Capital Limited reported a $3.06 million net profit for FY25 and announced a 1.35 cent dividend, while restructuring its convertible notes to enhance investor returns.
- FY25 net profit after tax of $3.06 million, down from $4.33 million in FY24
- Declared September quarter dividend of 1.35 cents per share, 50% franked
- Restructured CAMG convertible notes with higher interest and extended maturity
- CAM portfolio outperformed ASX index over recent months
- Maintains substantial profit reserves and franking credits
Financial Performance Overview
Clime Capital Limited (ASX, CAM) has released its financial results for the year ended 30 June 2025, reporting a net profit after tax of $3.06 million. This represents a decline from the previous year’s $4.33 million, reflecting a more challenging market environment. Despite this dip, the company’s balance sheet remains robust, supported by a profit reserve of $33.25 million and a franking account balance of $0.48 million after the June quarter dividend.
Dividend Declaration and Shareholder Returns
In line with its commitment to shareholder returns, Clime Capital declared a September quarter dividend of 1.35 cents per share, half franked. The record date for dividend entitlements is set for 9 October 2025, with payments scheduled for 23 October. This dividend reflects the company’s ongoing ability to generate income from its diversified investment portfolio, including both listed and unlisted entities.
Convertible Notes Restructure
A significant development for investors is the recent restructuring of the CAMG convertible notes, approved by noteholders on 31 July 2025. The restructure introduces monthly interest payments at an increased rate of 6.5% per annum, up from 5.25%, and extends the maturity date to 30 November 2028. This adjustment improves cash flow predictability for noteholders and potentially enhances the attractiveness of the notes as a fixed income instrument within the company’s capital structure.
Portfolio Performance and Market Position
Clime Capital’s investment portfolio has demonstrated resilience and strength, outperforming the ASX index over the past six months. The company notes a clear rotation towards value stocks, which has supported portfolio gains continuing into August. This performance underpins the company’s income streams and supports its capacity to maintain profit reserves and pay dividends.
Looking Ahead
While the net profit decline signals some headwinds, Clime Capital’s strategic moves; particularly the convertible notes restructure and dividend declaration; highlight a focus on balancing growth with shareholder returns. Investors will be watching closely how the portfolio navigates evolving market conditions and how the new notes terms impact the company’s financial flexibility.
Bottom Line?
Clime Capital’s financial resilience and strategic capital adjustments set the stage for a pivotal year ahead.
Questions in the middle?
- How will the increased interest rate on convertible notes affect Clime Capital’s future earnings?
- What specific sectors or stocks are driving the portfolio’s recent outperformance?
- Will the company maintain or increase dividend payouts amid market volatility?