Teaminvest Reports $2.8 Million Profit with 14% Revenue Growth and $12.1 Million Investments

Profit Growth Masks Underlying Earnings Strength

Teaminvest Private Group Limited (ASX:TIP) delivered a 19.1% rise in statutory profit to $2.8 million for the year ended 30 June 2026, underpinned by robust growth in its active portfolio. However, the headline profit figure understates the underlying business strength due to mark-to-market losses and reduced performance fees in its passive portfolio and funds management divisions. On a like-for-like basis, comparable profit soared 131% to $5.4 million, highlighting the resilience of TIP's core operations despite market volatility.

Active Portfolio Drives Compounding Returns

TIP’s active portfolio remains the engine of growth, with revenue climbing 14.4% to $161 million and EBITDA jumping 23.9% to $14.1 million. Key contributors included Multimedia Technology (+198% EBITDA), Automation Group (+86%), East Coast Traffic Control (+31%), and Icon Metal (+18%). Impressively, these businesses have already returned more capital to TIP than was initially invested, underscoring successful capital allocation and operational execution. Meanwhile, GLT and Wattle Court faced profit declines but benefited from strategic investments to build recurring revenue streams and strengthen competitive moats.

Capital Allocation and Cashflow Remain Strong

TIP invested $12.1 million in organic and acquisitive growth initiatives during FY26, nearly tripling the prior year’s $4.5 million spend. Operating cashflow stayed healthy at $6.6 million, with a cash conversion ratio exceeding 200%, enabling TIP to declare a 3.10 cents per share dividend (up 3.3%) and repurchase $0.5 million of shares on-market. The group’s money on invested capital (MOIC) rose to 3.1x, indicating that for every dollar invested, TIP has generated $3.10 in value, even as the portfolio expanded.

Passive Portfolio Faces Market Headwinds

TIP’s passive portfolio increased modestly to $15.7 million but suffered a $1.1 million mark-to-market loss due to ongoing market discounts on listed holdings and lower performance fees, which combined to drag profits by $3.7 million compared to FY25. The company views these setbacks as cyclical and consistent with its value investing approach, expecting these temporary headwinds to create future buying opportunities and “free-kicks” for gains.

Strategic Acquisition to Accelerate Growth

TIP announced a $16 million proposed acquisition of Intelligent Investor from InvestSMART (ASX:INV), a respected investment newsletter and stock research business with 272,000 free users and approximately 7,000 paying subscribers. Intelligent Investor also manages four ETFs with $273 million in funds under management. The deal, valued at an FY26 EV/EBITDA multiple of 5.9x, aligns closely with TIP’s philosophy of owning high-quality, recurring revenue businesses and is expected to be earnings accretive from day one. This acquisition will significantly expand TIP’s distribution capabilities and customer reach.

Governance, Risk, and Outlook

The group maintains a strong governance framework with a focus on managing operational, cybersecurity, and regulatory risks, including AML/CTF compliance. Climate-related risks are acknowledged, with ongoing efforts to build internal capabilities and resilience. TIP’s FY27 priorities include integrating Intelligent Investor, converting recent investments into higher cashflows, and continuing disciplined capital allocation to compound shareholder value over the long term.

Audit Qualification Highlights Valuation Uncertainty

The FY26 financial statements were issued with a modified audit opinion due to management’s inability to obtain sufficient evidence supporting the valuation of certain unlisted managed funds and investments classified as Level 3 in the fair value hierarchy. This introduces some uncertainty around asset valuations, although TIP’s management believes the underlying investments remain sound.