Katana Capital Boosts Profit to $2.67M, Declares 0.5c Dividend Amid Share Buyback
Katana Capital Limited reported a solid increase in net profit for FY2025 alongside a fully franked dividend and a strategic share buyback, signaling confidence despite lower revenue.
- Net profit rises to $2.665 million, up from $2.114 million
- Revenue declines to $977,000 excluding investment income
- Final fully franked dividend declared at 0.5 cents per share
- Share buyback of 1.18 million shares completed at average $1.21
- Post-year option exercise raises $2.2 million in capital
Katana Capital’s Financial Performance
Katana Capital Limited has delivered a noteworthy financial performance for the year ended 30 June 2025, reporting a net profit after tax of $2.665 million. This marks a 26% increase compared to the $2.114 million profit recorded in the previous year, underscoring the company’s ability to enhance shareholder returns despite a significant drop in revenue.
Revenue from ordinary activities fell sharply to $977,000 from $2.665 million in FY2024, primarily due to the exclusion of investment income in this figure. However, total net investment income remained robust, supporting the company’s profitability.
Dividend and Capital Management
Reflecting confidence in its financial position, Katana Capital declared a fully franked final dividend of 0.5 cents per share, consistent with the prior year’s payout. The dividend record date is set for 8 July 2025, providing shareholders with a steady income stream amid market uncertainties.
In a move to optimize capital structure and return value to shareholders, the company completed a share buyback program, repurchasing 1,177,570 shares at an average price of $1.21. This buyback reduced the total number of shares on issue, potentially enhancing earnings per share and shareholder value.
Post-Balance Sheet Developments
Following the fiscal year end, Katana Capital successfully raised $2.2 million through the exercise of 1,753,638 options. This capital injection strengthens the company’s balance sheet and provides additional flexibility for future investment or operational needs. Notably, all remaining options have now expired, simplifying the company’s capital structure going forward.
Outlook and Market Position
Operating solely within Australia’s investment funds management sector, Katana Capital reported no contingent liabilities or assets, indicating a stable risk profile. Net tangible asset backing per share improved to $1.36, up from $1.29, reflecting solid asset management and capital preservation.
While the revenue decline warrants attention, the company’s strategic capital management and profit growth suggest resilience. Investors will be watching closely how Katana Capital leverages its strengthened equity base and navigates market conditions in the coming year.
Bottom Line?
Katana Capital’s blend of profit growth, dividend stability, and capital management sets the stage for a pivotal year ahead.
Questions in the middle?
- What factors contributed to the sharp decline in revenue excluding investment income?
- How will the recent option exercises impact future earnings dilution and shareholder value?
- What strategic initiatives will Katana Capital pursue to sustain profit growth amid market challenges?