Acorn Capital Investment Fund Limited has reported a remarkable half-year performance for the period ending 31 December 2025, with revenue and profit soaring over 300%. The fund also declared a fully franked interim dividend of 3.5 cents per share, signalling confidence in its investment strategy.
- Revenue increased 306% to $22.9 million
- Profit after tax rose 359% to $15.4 million
- Basic earnings per share jumped to 17.20 cents
- Interim dividend of 3.5 cents per share declared, fully franked
- Net tangible asset backing per share increased to $1.2533 post-tax
Strong Financial Performance
Acorn Capital Investment Fund Limited (ASX: ACQ) has delivered a standout half-year result for the six months ending 31 December 2025. The fund reported revenue of $22.9 million, a staggering 306% increase compared to the prior corresponding period. This translated into a profit after tax of $15.4 million, up 359% from $3.36 million a year earlier, underscoring the effectiveness of its investment approach.
Basic earnings per share surged to 17.20 cents, a significant improvement on the 3.77 cents recorded in the previous half-year. These figures reflect strong portfolio performance across both listed and unlisted investments managed by Acorn Capital Limited, the fund’s investment manager.
Dividend Declaration and Shareholder Returns
In line with its robust earnings, the Board declared an interim dividend of 3.5 cents per share, fully franked at a 30% tax rate. The dividend is payable on 6 May 2026, with an ex-dividend date of 16 April 2026. Importantly, the fund has an active Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest dividends into additional shares, supporting long-term capital growth.
The dividend reflects the company’s commitment to delivering consistent income to investors while maintaining sufficient liquidity and capital for ongoing investment opportunities.
Net Tangible Asset Growth and Portfolio Valuation
Net tangible asset (NTA) backing per share, a key metric for investment funds, rose to $1.2533 post-tax as at 31 December 2025, up from $1.1100 at the previous financial year-end. This increase signals enhanced underlying asset values and effective portfolio management.
The fund’s portfolio includes a mix of listed equities, unlisted equities, convertible notes, and warrants. Valuations of unlisted investments involve complex methodologies, including relative valuation techniques and option pricing models, reflecting the fund’s exposure to microcap and private market opportunities.
Governance and Compliance
The half-year financial report was independently reviewed by Ernst & Young, with no issues raised regarding compliance or financial integrity. The Directors confirmed there were no significant changes in the company’s activities or state of affairs during the period, nor any material events after the reporting date that would impact future results.
Looking ahead, the company is monitoring upcoming accounting standard changes that may affect presentation and disclosure but does not expect material impacts on recognition or measurement.
Bottom Line?
Acorn Capital’s strong interim results and dividend declaration set a positive tone for FY26, but investors will watch closely how evolving accounting standards and portfolio valuations unfold.
Questions in the middle?
- How will upcoming accounting standard changes affect future financial reporting and investor transparency?
- What is the outlook for the valuation and liquidity of the fund’s unlisted investments amid market uncertainties?
- Will the fund maintain or increase its dividend payout ratio given its growth trajectory and capital deployment plans?