WAM Leaders Limited has reported a remarkable half-year profit surge and raised its fully franked interim dividend, driven by strong portfolio gains that outpaced the ASX 200.
- Net profit after tax jumps 157% to nearly $100 million
- Investment portfolio grows 8.4%, beating ASX 200 Accumulation Index by 4.8%
- Interim dividend increased to 4.8 cents per share, fully franked
- Net tangible asset backing per share rises to $1.32
- Company highlights ongoing market, governance, and cyber risks
Robust Financial Performance
WAM Leaders Limited has delivered an impressive financial performance for the half year ended 31 December 2025, reporting a net profit after tax of $99.9 million. This represents a striking 157% increase compared to the same period last year. Revenue from ordinary activities soared to $152.1 million, while profit before tax climbed 185% to $137 million. These results underscore the company’s effective investment strategy and operational execution.
Portfolio Outperformance Drives Growth
The company’s investment portfolio appreciated by 8.4% over the six months, outperforming the benchmark S&P/ASX 200 Accumulation Index by 4.8%. This outperformance was achieved with a modest average cash weighting of 4%, reflecting a balanced approach to risk and opportunity. Since its inception in 2016, WAM Leaders has delivered an annualised portfolio return of 12.1%, consistently beating the market by 2.8% per annum.
Shareholder Returns and Dividend Policy
Reflecting its strong earnings, the Board declared a fully franked interim dividend of 4.8 cents per share, slightly up from the 4.7 cents paid in the previous final dividend. This marks a continuation of WAM Leaders’ commitment to providing shareholders with a reliable stream of fully franked dividends. The net tangible asset (NTA) backing per share increased to $1.32, reinforcing the company’s solid capital position. Total shareholder return, including franking credits, reached 16.8% for the period, boosted by a narrowing discount of the share price to NTA.
Risk Management and Governance
WAM Leaders continues to emphasise robust risk management amid a complex investment environment. The company identified key risks including market volatility, investment strategy execution, economic uncertainties, and governance challenges. Notably, the governance structure includes both independent and non-independent directors, with potential conflicts of interest managed through established processes. Cybersecurity and data privacy risks are also acknowledged, with ongoing efforts to safeguard critical systems and shareholder information.
Outlook and Considerations
While the half-year results are encouraging, the company cautions that unrealised gains and fair value adjustments can cause fluctuations in reported profits. Additionally, the valuation of certain investments, such as Corporate Travel Management Limited, remains uncertain due to recent trading suspensions and financial irregularities. Investors will be watching closely how these factors evolve alongside broader market conditions.
Bottom Line?
WAM Leaders’ strong half-year results and dividend hike set a confident tone, but investors should watch for valuation risks and market volatility ahead.
Questions in the middle?
- How will WAM Leaders manage the valuation uncertainty around Corporate Travel Management Limited?
- What impact might the governance structure have on future investment decisions and fee arrangements?
- How prepared is the company to mitigate escalating cyber and operational risks in a volatile market?