Hancock & Gore (ASX: $HNG) Half Year Results and Mountcastle Update

Hancock and Gore Limited (ASX: $HNG) has announced its half year results for the period ended 31 March 2024. The company expects a Net Profit After Tax (NPAT) of approximately $4 million, representing an 80% increase from the previous corresponding period. Additionally, Hancock and Gore intends to declare a dividend of 1 cent per share, marking a 100% increase from the prior year. The company's key profit drivers during the half year include a $3 million dividend received from Mountcastle, revenues of approximately $1 million across funds management and fixed income treasury investments, and a 27% Internal Rate of Return (IRR) on new strategic listed investments contributing $2 million in profit.

Executive Commentary on Half Year Results and Mountcastle Update

The H&G result for the half year has been positive, driven by completing acquisitions of Mountcastle shareholdings to achieve 100% ownership in March 2024. Mountcastle's contribution has been complemented by H&G's continued diversified investment activities. Steven Doyle, Mountcastle's Executive Chair, joined the H&G Board in November 2023 and is collaborating closely with H&G's investment team and the board to identify the next key operating pillar for long-term cash generation.

Summary of Half Year Results and Mountcastle Update

Hancock & Gore's half year results reflect a positive performance, with an expected NPAT of approximately $4 million and a planned dividend increase of 100% compared to the previous corresponding period. The company's key profit drivers include a $3 million dividend received from Mountcastle, revenues from funds management and fixed income treasury investments, and a 27% IRR on new strategic listed investments. Mountcastle's FY24 performance indicates weaknesses in discretionary corporate and fashion sectors, potentially impacting its year-end results. However, Mountcastle's core schoolwear business remains robust, and the company continues to assess M&A opportunities while maintaining a cautious approach in the current macroeconomic environment. Hancock & Gore remains confident in the long-term growth prospects of Mountcastle and will provide further details on Mountcastle's performance when it releases its half year results on 21 May 2024.