Desane Group Holdings (ASX: $DGH) announces solid HY24 results

Desane Group Holdings Limited (ASX: $DGH) has reported its half-year results for the period ending 31 December 2023, with Earnings Before Interest & Tax (EBIT) of $3.6m. The Group's total assets increased by 6% to $104.9m, with investment property holdings up by 9% to $84.7m. The Group's gearing remained stable at 40%, and the Net Tangible Assets (NTA) per share saw a 4% increase to $1.64. Property rental income also experienced a significant 25% increase over the previous corresponding period.

Executive Commentary

Desane has ensured that shareholders' capital is minimally affected by the current economic environment and will continue to focus on strategic investment acquisitions, evaluating its development pipeline, and reviewing capital management strategies to ensure asset growth and reward shareholders with dividends. The Group's investment property located at 91 Thornton Drive, Penrith NSW, saw a significant revaluation increase of $3.4m (35%), resulting in the property now being valued at $13.5m. Additionally, the Group acquired an investment property for $3.5m located at 35 Norton Street, Leichhardt NSW, as part of its investment portfolio restocking. The Board has resolved to not recommend the payment of an interim dividend for the half year ended 31 December 2023, with a focus on returning to paying sustainable dividends to shareholders while achieving capital growth.

Summary

Desane Group Holdings (ASX: $DGH) has reported solid HY24 results, with increases in total assets, investment property holdings, and NTA per share. The Group is committed to focusing on strategic investment acquisitions, evaluating its development pipeline, and reviewing capital management strategies to ensure asset growth and reward shareholders with dividends. The Group's investment property in Penrith, NSW, saw a significant revaluation increase, and the acquisition of an investment property in Leichhardt, NSW, is part of the Group's investment portfolio restocking. The Board has resolved to not recommend the payment of an interim dividend for the half year ended 31 December 2023, with a focus on returning to paying sustainable dividends to shareholders while achieving capital growth.