Clime Capital Surges to $7.8M Profit, Boosts Dividend Franking to 65%

Strong Financial Turnaround

Clime Capital Limited (ASX – CAM) has revealed a significant financial turnaround, expecting a pretax profit of approximately $7.8 million for the six months ended 31 December 2025. This marks a stark contrast to the loss of $1.9 million reported in the same period last year. While the figure remains unaudited and subject to final clearance, it signals a robust recovery for the investment management firm.

Dividend and Franking Policy Update

Alongside the profit guidance, Clime Capital announced plans to declare a March quarter dividend of no less than 1.35 cents per share, with a franking rate increased to 65%. This is a notable uplift from previous quarters and reflects the company’s improved franking credit position. For the fiscal year 2026/27, the board intends to maintain quarterly dividends franked at 50%, subject to annual review based on franking credit availability.

Portfolio Performance Outpaces Benchmark

The company’s portfolio performance has outperformed the benchmark index, delivering a gross return of 8.15% (pre-tax and fees) for the half year, compared to the All Ordinaries Accumulation index’s 4.4% return. This strong performance underpins the improved profitability and dividend capacity, highlighting effective portfolio management during a challenging market environment.

Financial Position and Outlook

Clime Capital holds a substantial profit reserve of approximately $35.3 million as of 31 December 2025, providing a solid buffer for future operations and shareholder returns. The company also expects to maintain a positive franking account balance by 30 June 2026 after the March dividend payment, which supports ongoing dividend frankability. The board plans to release the audited half-year results and formal dividend declaration in late February, which will provide further clarity on the company’s financial health and strategic direction.