London City Equities Posts 1460% Profit Surge and Declares 2.5 Cent Fully Franked Dividend for 2026
London City Equities delivered a remarkable 1460% jump in profit after tax for FY2026, driven by key asset sales and liquidation gains, while maintaining a cautious investment stance and confirming a steady dividend payout.
- 1460% increase in profit after tax to $7.8 million
- Sale of final Fiducian Group shares yielded $5.6 million capital gain
- Received $8.1 million in fully franked dividends from Excelsior Capital liquidation
- Net tangible assets rose 16% to $28.4 million
- Fully franked dividend of 2.5 cents per share declared
Profit Soars on Fiducian Exit and Liquidation Windfall
London City Equities Limited (ASX:LCE) reported a staggering 1460% increase in profit after tax for the year ended 30 June 2026, leaping from $500,000 in 2025 to $7.8 million. This surge was largely fuelled by the sale of its final 1.8% stake in Fiducian Group Limited, which generated a $5.6 million capital gain. Alongside this, the company received two fully franked dividends totalling $8.1 million from the ongoing voluntary liquidation of Excelsior Capital Limited, following a legal settlement reached in November 2025.
Strategic Legal Resolution and Liquid Asset Focus
London City’s decision to withdraw Federal Court litigation against Excelsior Capital in exchange for a managed liquidation has unlocked significant cash returns. The liquidation process remains underway, but the dividends already received have fortified London City’s balance sheet. Reflecting a cautious stance amid volatile markets and economic uncertainty, London City has shifted its portfolio towards liquid, interest-bearing assets, which now comprise over 80% of total holdings at year-end, primarily held in bank deposits and securities.
Balance Sheet Strength and Dividend Policy
The company’s net tangible assets climbed 16% to $28.4 million, translating to 89.6 cents per share, up from 78.6 cents the previous year. London City’s directors confirmed a fully franked dividend of 2.5 cents per share for 2026, maintaining the previous year’s special 1 cent component as a permanent feature of the ordinary dividend. The Dividend Reinvestment Plan remains in operation, offering shareholders a flexible income option.
Outlook and Remaining Uncertainties
While the financial statements have been audited with no disputes, the full impact of the Excelsior Capital liquidation is yet to be realised. London City’s cautious investment approach and bolstered liquidity position suggest readiness for future opportunities, but the timing and scale of further returns from Excelsior remain uncertain. Investors will be watching how the company balances capital preservation with potential reinvestment as market conditions evolve.
Bottom Line?
London City’s exceptional profit leap and steady dividend underscore a disciplined approach amid market volatility, but the final outcomes of the Excelsior liquidation will shape its next chapter.
Questions in the middle?
- How will London City deploy its increased liquidity once the Excelsior liquidation concludes?
- What risks remain from the ongoing liquidation process that could affect future earnings?
- Will the cautious investment stance persist, or will the company shift towards higher-growth assets?
