WAM Capital reports 11.6% increase in investment portfolio

WAM Capital Limited (ASX: $WAM) has reported an 11.6% increase in its investment portfolio for the half year ended 31 December 2023. The company's operating profit before tax amounted to $148,744,583, reflecting the performance of the investment portfolio over the period.

Executive Commentary on Financial Performance and Dividends

The operating profit for the period includes unrealised gains or losses arising from changes in the fair value of the investments held in the investment portfolio during the period. The NTA before tax increased 8.0% for the six months to 31 December 2023, including the 7.75 cents per share fully franked final dividend paid to shareholders during the period. The total shareholder return (TSR) for the Company for the period to 31 December 2023 was 5.6% and was driven by the investment portfolio performance of 11.6%, offset by the decline in share price premium to NTA.

Summary of Financial Performance and Dividend Outlook

WAM Capital's NTA before tax increased 8.0% for the six months to 31 December 2023, including the 7.75 cents per share fully franked final dividend paid to shareholders during the period. The company's ability to continue paying franked dividends at the current level is dependent on generating additional profits reserves through positive investment portfolio performance in FY2024 and beyond and franking credits available. The Board of Directors expects the final dividend of 7.75 cents per share to be partially franked at 60% and anticipates the investment portfolio to increase an estimated 2.9% before 30 June 2024 to maintain the current dividend level.