Imperial Pacific Limited reported a half-year net profit of $148,000 for the six months ending December 2025, supported by strong asset growth and a fully franked 7 cent dividend. The company’s portfolio, including stakes in London City Equities and Excelsior Capital, drove net asset value to record highs despite a dip in profit.
- Half-year net profit down 32% to $148,000
- Net assets per share rise to $2.32, a record high
- 7.00 cents fully franked dividend paid in October 2025
- 41.5% stake in London City Equities boosts portfolio value
- Awaiting details on Excelsior Capital’s liquidation and asset distribution
Steady Profit Despite Market Volatility
Imperial Pacific Limited has released its half-year results for the period ending 31 December 2025, revealing a net profit of $148,000. This represents a 32% decline compared to the same period last year, reflecting a more cautious earnings environment. However, the company’s net asset value per share climbed to a record $2.32, underscoring robust portfolio gains that have helped offset the profit dip.
Portfolio Performance Drives Asset Growth
The company’s investment portfolio was the key driver behind the improved net asset position. Imperial Pacific holds a significant 41.5% stake in London City Equities Limited, which delivered strong performance during the period. Additionally, a 2% direct holding in Excelsior Capital Limited contributed positively, particularly after an agreement was reached to liquidate Excelsior and return funds to shareholders. These holdings helped the portfolio appreciate by 17% over six months, well ahead of the ASX All Ordinaries Index’s 2.8% rise.
Dividend and Reinvestment Plan
Imperial Pacific paid a fully franked dividend of 7.00 cents per share in October 2025, maintaining its commitment to returning value to shareholders. The company also reinstated its Dividend Reinvestment Plan (DRP) during the period, allowing shareholders to reinvest dividends into new shares without a discount. No interim dividends are planned for the current reporting period.
Uncertainty Around Excelsior Capital’s Liquidation
While the liquidation of Excelsior Capital Limited promises to return significant funds to shareholders, details remain unclear regarding the timing and the extent of franking credits associated with the payout. Imperial Pacific is monitoring the situation closely, as ongoing asset losses at Excelsior could impact future earnings and dividend capacity.
Outlook and Market Context
Imperial Pacific’s chairman highlighted the positive impact of strong international stock markets and the company’s strategic investments on its net worth. Despite the modest profit, the company’s balance sheet strength and dividend policy reflect confidence in its long-term investment approach. However, market volatility and pending developments around Excelsior Capital inject an element of caution into the outlook.
Bottom Line?
Imperial Pacific’s solid asset growth and dividend payout mask underlying profit pressures and pending uncertainties around key investments.
Questions in the middle?
- How will the final asset distribution from Excelsior Capital’s liquidation affect Imperial Pacific’s earnings?
- Can Imperial Pacific sustain its dividend policy amid volatile market conditions?
- What is the outlook for performance fees from London City Equities in the coming year?