H&G High Conviction (ASX: $HCF) reports successful first half

H&G High Conviction Limited (ASX: $HCF) had a successful first half of the financial year, generating net profit after tax of $1,448,906. The company's basic and diluted earnings per share after tax were 5.9 cents. The major drivers of this result were a $842,609 realised gain on investments and $1,276,399 unrealised gain on investments, offset by operating costs of $570,093.

Executive Commentary on Investment Strategy and Financial Performance

HCF's investment strategy focuses on a concentrated portfolio of ASX-listed micro capitalisation companies. The company actively engages with companies it considers to have superior fundamental prospects but are priced at a discount relative to perceived inherent value. The primary goals are to generate long-term double-digit per annum returns while minimizing capital loss. The company's Net Tangible Asset (NTA) backing per share, as at 31 December 2023, was $1.070 after all taxes and $1.12 before deferred tax on unrealised gains. HCF ended the period with $4,750,648 in cash and $2,085,338 in a cash equivalent ETF.

Summary of H&G High Conviction's Financial Performance and Outlook

H&G High Conviction Limited (ASX: $HCF) reported a successful first half with a net profit after tax of $1,448,906. The company's investment strategy focuses on a concentrated portfolio of ASX-listed micro capitalisation companies, aiming to generate long-term double-digit per annum returns while minimizing capital loss. The Net Tangible Asset (NTA) backing per share, as at 31 December 2023, was $1.070 after all taxes and $1.12 before deferred tax on unrealised gains. HCF ended the period with $4,750,648 in cash and $2,085,338 in a cash equivalent ETF. The company declared a fully franked interim dividend of 2 cents per share and intends to pay fully franked dividends where and when available from franked dividends received from underlying portfolio companies and a portion of realised profits from the sale of securities. The outlook and likely developments in the operations of the group are detailed in the Review of Operations and Events Occurring After the Reporting Date. The company's directors declared a final fully franked dividend of 2 cents per share payable on 25 March 2024.