Pengana Capital Group Limited has reported a significant 51% decline in half-year profit after tax to $1.713 million for the period ending 31 December 2025, alongside a 5% drop in revenue. Despite this, the company declared a fully franked interim dividend of 2.5 cents per share.
- 51% decline in half-year profit after tax to $1.713 million
- 5% decrease in revenue to $33.157 million
- Basic earnings per share fell to 1.82 cents from 4.02 cents
- Declared fully franked interim dividend of 2.5 cents per share
- Ongoing on-market share buy-back program
Half-Year Financial Performance
Pengana Capital Group Limited has released its half-year results for the period ended 31 December 2025, revealing a marked decline in profitability. The group’s profit after tax halved to $1.713 million, down 51% from $3.498 million in the prior corresponding period. Revenue also slipped by 5%, falling to $33.157 million from $34.906 million. This downturn reflects a challenging environment for the funds management sector, with pressures on fee income and performance fees evident.
Earnings and Dividends
Basic earnings per share dropped significantly to 1.82 cents from 4.02 cents a year earlier, while diluted earnings per share followed a similar trend. Despite the profit contraction, Pengana’s board declared a fully franked interim dividend of 2.5 cents per share, up from the 2.0 cents final dividend paid for the previous financial year. This move signals management’s confidence in the company’s cash flow and commitment to returning value to shareholders amid a subdued earnings backdrop.
Balance Sheet and Capital Management
The group’s net tangible assets per share increased slightly to 40.83 cents, reflecting a stable asset base. Pengana continues to execute an on-market share buy-back program, having repurchased 160,951 ordinary shares during the half-year, with a maximum buy-back target of nearly 10 million shares extending through September 2026. This buy-back initiative underscores the company’s focus on capital management and shareholder returns.
Operational Context and Outlook
Pengana’s principal activity remains funds management, aiming to grow investor wealth through a diverse range of investment funds. The company notes no significant changes in its state of affairs during the period. However, the CEO’s report, which provides a detailed operational review, was referenced but not included in the announcement, leaving some questions about the strategic drivers behind the profit decline. The group also highlighted that accounting standards requiring consolidation of certain investment vehicles and recognition of performance fees can distort reported results, suggesting investors consider adjusted metrics for a clearer picture.
Audit and Compliance
The half-year financial statements received an unqualified review from Ernst & Young, affirming compliance with Australian accounting standards and regulatory requirements. This independent assurance adds credibility to the reported figures and the company’s disclosures.
Bottom Line?
Pengana’s profit decline and dividend declaration set the stage for close investor scrutiny as the company navigates a complex funds management landscape in 2026.
Questions in the middle?
- What operational factors contributed most to the 51% profit decline?
- How will the ongoing share buy-back impact Pengana’s capital structure and share price?
- What is the outlook for performance fees and revenue growth in the coming half-year?