Glennon Small Companies (ASX: $GC1) H1 FY24 Financial Results

Glennon Small Companies Limited (ASX: $GC1) has reported a decrease in revenue from ordinary activities to $0.624m and net profit from ordinary activities before tax to $0.052m for the half-year ended 31 December 2023. The decrease was primarily attributed to lower combined realised and unrealised losses on the portfolio recognized during the half-year. The company also announced an interim ordinary dividend of 1 cent per fully paid share, fully franked at 30%, and an unfranked dividend on Resettable Redeemable Convertible Preference Shares (RRCPS) of 28 cents per RRCPS to be paid on 2 April 2024.

Executive Commentary on H1 FY24 Performance

The operating profit before tax including realised and unrealised investment movements was $52,000 to 31 December 2023, trailing behind the previous corresponding period. The net result after tax was a profit of $180,000. The Company's portfolio returned +1.44% during the six months ended 31 December 2023, trailing behind its benchmark (S&P/ASX Small Ordinaries Accumulation index), which rose +6.42% over the same period. The Company addressed the market challenges by reducing nano cap exposure in the portfolio to 11% and micro cap exposure to 6%. Additionally, a buyback was announced in November 2023 to improve the discount and low levels of liquidity in the Company.

Summary of H1 FY24 Report and Outlook

Glennon Small Companies (ASX: $GC1) reported a decrease in revenue and net profit for the half-year ended 31 December 2023, primarily due to lower combined realised and unrealised losses on the portfolio. The company announced an interim ordinary dividend of 1 cent per fully paid share, fully franked at 30%, and an unfranked dividend on Resettable Redeemable Convertible Preference Shares (RRCPS) of 28 cents per RRCPS to be paid on 2 April 2024. The Company addressed market challenges by reducing nano cap exposure in the portfolio and implementing a buyback in November 2023. Looking ahead, the Company aims to navigate market volatility and enhance shareholder value through strategic portfolio adjustments and prudent financial management.