Underlying NPAT Drops 56% to A$6.7m as Pacific Current Raises Dividend
Pacific Current Group reports a 56% drop in underlying NPAT for 1H26 but raises its interim dividend and advances strategic portfolio moves including share buy-backs and debt repayment.
- Underlying NPAT falls to A$6.7 million from A$15.3 million
- Statutory net loss of A$11.7 million due to fair value adjustments
- Fully franked interim dividend increased to A$0.20 per share
- Funds under management decline 4% to A$28.8 billion
- Strategic portfolio simplifications include partial sale of Victory Park Capital and exit from Janus Henderson Group
Earnings and Dividend Highlights
Pacific Current Group Limited (ASX: PAC) has released its half-year results for the six months ended 31 December 2025, revealing a significant decline in underlying net profit after tax (NPAT) to A$6.7 million, down 56% from A$15.3 million in the prior corresponding period. This drop was primarily driven by lower distributions, management fees, and interest income, although partially offset by reduced corporate costs and lower interest expenses.
Despite the earnings dip, the company declared a fully franked interim dividend of A$0.20 per share, up from A$0.15 in the previous year, signalling confidence in its cash flow and capital position.
Portfolio and Capital Management Moves
Pacific Current has actively reshaped its portfolio during the period. Notably, it executed a partial sale of a 2% equity stake in Victory Park Capital Advisors to CNO Financial Group for A$8.4 million and fully exited its holding in Janus Henderson Group, generating A$14.4 million in proceeds. These moves simplify the investment portfolio and enhance liquidity.
The group also fully repaid its A$64.3 million senior secured debt facility with Washington H. Soul Pattinson, strengthening its balance sheet. Complementing this, Pacific Current initiated an on-market share buy-back program targeting up to 2 million shares, repurchasing nearly 192,000 shares for A$2 million by the end of December 2025. Over the past year, the number of shares on issue has been reduced by 43%, reflecting ongoing capital management efforts.
Funds Under Management and NAV
Funds under management (FUM) declined modestly by 4% to A$28.8 billion, reflecting market conditions and portfolio adjustments. The company’s statutory net asset value (NAV) per share stood at A$13.92, but management’s internal fair value estimate of NAV was higher at A$16.34 per share, indicating potential upside not fully captured in statutory accounts due to accounting standards.
Outlook and Strategic Focus
Looking ahead, Pacific Current’s management outlined priorities for fiscal 2026, including accelerating growth through selective investments in boutique partners, unlocking shareholder value via capital initiatives, maintaining disciplined cost control, and further strengthening the balance sheet. The company also plans to enhance organisational efficiency by refining governance and decision-making structures.
Chair Justin Arter emphasised the company’s disciplined approach to asset realisations and capital management, positioning Pacific Current well for future growth. Managing Director Michael Clarke highlighted ongoing efforts to simplify the portfolio and improve fair value NAV, while supporting growth initiatives within the boutique investment ecosystem.
Bottom Line?
Pacific Current’s strategic portfolio streamlining and capital management set the stage for a cautious yet optimistic growth phase despite near-term earnings pressures.
Questions in the middle?
- How will the fair value NAV adjustments translate into realised gains or losses in future periods?
- What new boutique partnerships or investments might Pacific Current pursue to accelerate growth?
- How sustainable is the increased fully franked dividend amid lower underlying earnings?
