Excelsior Capital Limited reported a $2.08 million loss for the half-year ending December 2025 as it moves to wind up operations, yet declared a substantial fully franked interim dividend.
- Half-year net comprehensive loss of $2.08 million reversing prior profit
- Company preparing for winding-up and capital return to shareholders
- Declared fully franked interim dividend of 241.43 cents per share
- Loss driven by negative portfolio performance and derivative trading
- Significant redemption of investment portfolio underway
Financial Results and Strategic Shift
Excelsior Capital Limited has announced a net comprehensive loss of $2.08 million for the half-year ended 31 December 2025, a sharp reversal from the $1.83 million profit recorded in the same period last year. This disappointing result reflects a combination of negative returns from its investment portfolio, losses on derivative trading, and ongoing corporate costs.
In a significant strategic development, the company has confirmed it is in the process of winding up its operations following an agreement with key stakeholders. This decision marks a fundamental shift from its previous investment management activities and has led to the preparation of interim financial statements on a liquidation basis rather than as a going concern.
Dividend Declaration Amid Winding-Up
Despite the loss, Excelsior’s board declared a fully franked interim dividend of 241.43 cents per share, payable on 20 March 2026. This dividend is notably large compared to prior periods and underscores the company’s commitment to returning capital to shareholders as it progresses through the winding-up process. The dividend has not been provided for in the interim financial report, reflecting its declaration after the reporting date.
The company’s net tangible assets per security have declined slightly to $3.80 from $3.98 a year earlier, consistent with the ongoing portfolio realisations and the winding-up basis of accounting.
Portfolio Performance and Asset Realisations
Excelsior’s investment income for the half-year was negatively impacted by a $3.68 million loss on derivative financial instruments, offset partially by gains on its long-term portfolio assets. The company has actively redeemed a significant portion of its investment portfolio, with $26.7 million of assets redeemed but not yet settled as at 31 December 2025. These redemptions are expected to convert to cash within six months, aiding liquidity for capital returns.
The portfolio includes a diverse range of investments such as unlisted unit trusts, equity shares including LocalAgentfinder Limited, and hybrid notes. Valuations have been adjusted to reflect expected realisable values under the winding-up scenario, with fair value measurements applied accordingly.
Outlook and Market Implications
Excelsior’s directors have signalled ongoing efforts to redeem remaining assets and distribute further special dividends to shareholders. While the winding-up process introduces uncertainties around timing and final quantum of returns, the company remains focused on maximising value for investors.
Auditors Hall Chadwick have reviewed the interim report and issued an unmodified conclusion, noting the change to a liquidation basis of accounting. The company’s leadership, including Chairman Danny Herceg, emphasises prudent management through this transition.
Bottom Line?
Excelsior’s winding-up and large dividend declaration mark a pivotal moment, with investors watching closely for the pace and scale of capital returns ahead.
Questions in the middle?
- What is the expected timeline for completing the winding-up and final capital returns?
- How might remaining illiquid assets impact the ultimate value realised for shareholders?
- Will the company declare further special dividends beyond the interim payment?