NAOS Ex-50’s Share Buybacks Narrow NTA Discount Amid Market Uncertainty

Strong Financial Turnaround

NAOS Ex-50 Opportunities Company Limited (ASX: NAC) has delivered a striking half-year financial performance for the period ending 31 December 2025. The company reported a profit after tax of $4.32 million, a dramatic 261% increase compared to a loss of $2.68 million in the prior corresponding period. This turnaround was driven by a 363% surge in revenue to nearly $6.87 million and a 13.84% return on its investment portfolio, significantly outperforming the S&P/ASX 300 Industrials Accumulation Index, which declined by 3.26% over the same period.

Investment Strategy and Market Context

The company’s concentrated portfolio focuses on Australian emerging companies outside the resources sector, targeting profitable, cash-generative businesses with clear catalysts. This approach proved timely amid a market environment marked by selective investor interest, inflation uncertainty, and currency volatility. While sectors like resources and gold led the broader market, NAOS Ex-50’s portfolio benefited from its selective positioning and active management, which the board believes will continue to pay dividends as market breadth improves and fundamentals gain prominence.

Capital Management and Shareholder Returns

NAOS Ex-50’s net tangible asset (NTA) backing per share rose from $0.56 to $0.82 post-tax, reflecting both portfolio gains and effective capital management. The company maintained its on-market share buyback program, purchasing 980,082 shares at a total cost of $539,422, which helped narrow the discount of the share price to NTA from nearly 30% to under 10%. This accretive strategy, combined with a total shareholder return of 55% for the half-year, underscores the board’s commitment to enhancing shareholder value.

Dividend Policy and Outlook

Reflecting its improved earnings, NAOS Ex-50 declared a fully franked quarterly interim dividend of 1.60 cents per share, up from 1.50 cents previously. The dividend reinvestment plan remains active, offering shareholders the option to reinvest dividends into additional shares. Looking ahead, the board anticipates that earnings delivery and management execution will be key drivers of market outcomes. The company’s focus on quality, cash-generative companies positions it well to navigate ongoing market uncertainties and capitalise on emerging opportunities.

Governance and Assurance

The half-year financial statements were independently reviewed by Deloitte Touche Tohmatsu, who reported no issues, affirming the company’s compliance with Australian accounting standards and regulatory requirements. The board, led by Independent Chair Sarah Williams, continues to oversee a disciplined investment and capital management approach aimed at long-term shareholder wealth creation.