WCM Global Growth Limited reported a robust 53% rise in net profit for FY2025, driven by strong portfolio returns and a successful capital raise, prompting an increased final dividend and upward revision of future dividends.
- Net profit after tax up 53.3% to AUD 69.5 million
- Investment portfolio returned 31.00%, outperforming benchmark by 12.41%
- Final dividend increased to 2.06 cents per share, fully franked
- Successful $76.7 million capital raise via placement and share purchase plan
- Net tangible assets per share rose to $2.025 pre-tax
Strong Financial Performance
WCM Global Growth Limited (ASX, WQG) has delivered a standout financial year ending 30 June 2025, posting a net profit after tax of AUD 69.5 million, a 53.3% increase from the previous year. This surge was primarily driven by a significant appreciation in the value of its investment portfolio, managed by WCM Investment Management, LLC, which achieved a 31.00% return for the year; well ahead of the MSCI All-Country World Index (ex-Australia) benchmark return of 18.59%.
The company’s net tangible asset (NTA) backing per share also saw a marked improvement, rising from $1.744 to $2.025 on a pre-tax basis, reflecting the strong underlying asset growth even after distributing dividends throughout the year.
Dividend Increase and Progressive Outlook
In light of the robust financial results and healthy franking credits, the Board declared a fully franked final dividend of 2.06 cents per share, exceeding its earlier guidance of 1.91 cents. This final dividend is payable on 30 September 2025, with a record date of 12 September 2025.
Moreover, the Board has revised upwards its future quarterly dividend intentions, signaling confidence in sustained profitability. The planned dividends for the upcoming four quarters range from 2.09 to 2.24 cents per share, all fully franked, subject to profit reserves and regulatory considerations.
Capital Raising and Market Position
WCM Global Growth successfully completed a capital raising initiative in November 2024, comprising a share placement and a Share Purchase Plan that collectively raised approximately AUD 76.7 million. This capital injection has expanded the company’s market capitalization and liquidity, with total assets growing 50% year-on-year to AUD 462 million as at 30 June 2025.
The enlarged shareholder base, now nearly 5,000 investors, and increased scale are expected to enhance the company’s market relevance and operational efficiencies.
Investment Strategy and Risk Considerations
WCM’s investment philosophy focuses on companies with strong economic moats and corporate cultures that foster sustainable competitive advantages. The portfolio’s outperformance over one, three, and five years underscores the effectiveness of this approach.
However, the portfolio remains unhedged against foreign currency fluctuations, exposing the company to currency risk that could introduce volatility in Australian dollar terms. The Board and management continue to monitor these risks closely.
Governance and Audit
The company’s financial report for FY2025 was audited by Ernst & Young, which issued an unqualified opinion, affirming the integrity of the financial statements and disclosures. The Board comprises experienced directors with diverse expertise in investment management, corporate law, and financial services, supporting strong governance standards.
Bottom Line?
WCM Global Growth’s strong FY2025 results and dividend upgrades set a positive tone, but currency exposure and fee structures warrant ongoing investor attention.
Questions in the middle?
- How will WCM Global Growth manage currency risk amid a volatile foreign exchange environment?
- What impact will the increased performance fees have on net returns for shareholders going forward?
- Can the company sustain its dividend growth trajectory if market conditions shift?