Hearts and Minds Investments Limited reported a dramatic 97% drop in half-year comprehensive income to $3 million, with a largely flat investment portfolio and a significant write-down of Corporate Travel Management shares. Despite this, the company declared a fully franked interim dividend of 9.5 cents per share.
- 97% decline in total comprehensive income to $3 million
- Investment portfolio flat with 0.4% pre-tax return versus 23.6% prior year
- Corporate Travel Management shares written down to zero after suspension
- Interim fully franked dividend of 9.5 cents per share declared
- Continued $5.4 million donations to Australian medical research
Significant Earnings Drop Amid Market Challenges
Hearts and Minds Investments Limited (HM1) has revealed a stark contrast in its half-year financial results ending 31 December 2025, reporting a total comprehensive income of just $3 million, a 97% plunge from $115.3 million in the same period last year. The sharp decline underscores the challenges faced by the investment company in a period where its portfolio performance was largely stagnant.
The company’s investment portfolio posted a modest pre-tax return of 0.4%, a significant slowdown from the 23.6% return recorded in the prior half-year. This underperformance was notable given the buoyant global markets during the period, highlighting selective pressures within HM1’s holdings.
Corporate Travel Management Write-Down
A key factor weighing on HM1’s results was the decision to write down its entire holding in Corporate Travel Management to zero. The shares were suspended from trading in August 2025 amid a negative market outlook, leaving no observable market price. While HM1 expects some recovery over time, the current valuation reflects the company’s cautious stance in the absence of market activity.
This write-down contributed materially to the flat portfolio performance and tempered the overall investment returns, which now stand at an annualised 10.8% since HM1’s inception in 2018, still respectable but below previous periods.
Dividend Maintained and Philanthropic Commitment Upheld
Despite the subdued earnings, HM1’s board declared an interim fully franked dividend of 9.5 cents per share, payable in April 2026, following a final dividend of 9.0 cents paid in October 2025. The company continues to offer a Dividend Reinvestment Plan, allowing shareholders to reinvest dividends at market prices.
True to its philanthropic mission, HM1 maintained its support for Australian medical research, disbursing $5.4 million in donations during the half-year and increasing its accrual for future donations to $8.8 million. This ongoing commitment is funded through the pro bono efforts of fund managers and directors, reflecting the company’s unique blend of investment and social impact objectives.
Robust Governance and Outlook
HM1’s board reaffirmed its commitment to strong risk management and governance frameworks, ensuring alignment with its investment strategy and philanthropic goals. The company’s net tangible assets per share stood at $3.36 post-dividend, with a slight decrease reflecting dividend payments and portfolio valuation adjustments.
Looking ahead, investors will be watching closely how HM1 navigates the recovery of its suspended holdings and whether its diversified portfolio can regain momentum in a complex global market environment.
Bottom Line?
HM1’s flat portfolio and steep income drop test resilience ahead of dividend payout and recovery prospects.
Questions in the middle?
- What is the timeline and likelihood for recovery of Corporate Travel Management shares?
- How will HM1’s portfolio strategy adapt to underperformance against global benchmarks?
- Will dividend reinvestment uptake increase amid flat share price and income volatility?