AMCIL Limited (ASX:AMH) Reports Half-Year Results
Performance Overview
AMCIL Limited reported a half-year profit of $3.6 million for the period ended 31 December 2024, reflecting a 12.6% decrease from the previous corresponding period. The reduction is attributed to lower income from the trading and options portfolios. Revenue from operating activities increased slightly to $5.0 million, up from $4.9 million.
The company’s six-month portfolio return was 8.7%, exceeding the S&P/ASX 200 Accumulation Index return of 7.6%. Over the past twelve months, AMCIL achieved a portfolio return of 17.3%, outperforming the Index’s 12.7%.
Dividend Declaration
The board declared an interim dividend of 1.0 cent per share, which is fully franked and consistent with last year’s interim dividend. The payment will be distributed on 26 February 2025 to shareholders on record as of 5 February 2025. The company offers a Dividend Reinvestment Plan (DRP) and a Dividend Substitution Share Plan (DSSP) for this dividend with elections to be submitted by 6 February 2025.
Portfolio Adjustments and Strategy
AMCIL’s portfolio saw a broadening of holdings, increasing to 48 companies from 41 a year prior. New additions include Sigma Healthcare, Redox Limited, Technology One, and Block. The company also strategically reduced its positions in some banking stocks as valuations reached high levels, reallocating capital into companies with strong growth potential.
Outlook and Management Commentary
Looking ahead, the company adopts a cautious approach amidst elevated market valuations and ongoing economic uncertainties. AMCIL maintains a strong liquidity position, positioning itself to capitalise on emerging opportunities amid sector variances. The team is confident in the quality of its existing portfolio and its potential to yield satisfactory returns against short-term pressures.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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