Cadence Capital Posts 508% Profit Surge, Revenue Nears $73M

Strong Financial Turnaround

Cadence Capital Limited has delivered a striking financial performance for the half-year ended 31 December 2025, posting a profit after tax of $39.8 million. This represents a dramatic 508% increase compared to a loss of $7.8 million in the same period last year. Revenue from ordinary activities surged by 896% to $72.6 million, underscoring a significant rebound in investment returns.

The company’s operating profit before tax also climbed sharply to $56.6 million, reversing the prior half-year loss of nearly $12 million. This robust turnaround reflects Cadence’s effective investment strategy and market positioning during a period of heightened volatility and opportunity.

Dividend and Shareholder Returns

In line with its strong earnings, Cadence declared a fully franked interim dividend of 3.0 cents per share, payable on 30 April 2026. This dividend maintains the company’s consistent payout policy, matching the previous interim dividend amount but improving the franking level to 100%, compared to 50% in the prior year. The Dividend Reinvestment Plan remains active, offering shareholders the option to reinvest dividends at a calculated weighted average market price.

The company also continued its on-market share buy-back program, which began in October 2025 and is set to run through October 2026. This initiative reflects management’s confidence in the company’s valuation and commitment to enhancing shareholder value.

Portfolio Performance and Asset Growth

Cadence’s investment portfolio delivered a gross performance of +25.3% over the half-year, significantly outperforming the All Ordinaries Accumulation Index’s 4.4% gain. Net investments increased to $249.3 million from $207.0 million at the previous half-year, contributing to a net asset value of $323.2 million, up from $292.3 million at June 2025.

Net tangible asset backing per share rose to $1.09, up from $0.96 a year earlier, signalling improved underlying asset quality and investor confidence. The company’s diversified approach, including both Australian and international securities, alongside selective use of derivatives for hedging, appears to have paid dividends in a challenging market environment.

Governance and Outlook

The half-year financial report was independently reviewed by HLB Mann Judd Assurance, with no issues raised regarding compliance or financial integrity. The board, led by Chairman Karl Siegling, remains unchanged and continues to oversee the company’s strategic direction.

While no material events have occurred since the reporting period, the company’s strong cash flow generation and prudent capital management position it well for future opportunities. Investors will be watching closely how Cadence navigates the evolving market landscape and whether it can sustain this impressive momentum into the next half-year.