Clime Investment Management Limited (ASX:CIW) Reports Profit and Dividend Proposal
Financial Performance
Clime Investment Management Limited (ASX:CIW) has announced a return to profitability for the December half-year. The company achieved a small profit, successfully covering abnormal expenses, and ends the half with $1 million in cash and $3.5 million in liquid assets and income-yielding notes. Managing Director Michael Baragwanath plans to recommend an interim dividend of at least 0.2 cents per share to the board, marking a significant step after nearly three years without a dividend.
Operational Initiatives
During the quarter, Clime undertook several key initiatives that enhanced its capabilities. The team finalised a comprehensive review of insurance arrangements related to the sold Madison Financial Services License. They achieved over $250,000 in IT cost savings, reinvesting these savings to improve technology, including process automation and hardware upgrades. Additionally, a new “Clime Direct” investment offer is being developed for self-directed investors using AI technology.
Strategic Client Engagement
Clime is revising its distribution strategy to boost client interactions through public events and strategic sponsorships. The company’s digital communication strategy has expanded its reach from under 1,000 to more than 21,000 unique accounts. The engagement includes Chairman John Abernethy’s popular economic commentary across social media platforms.
Funds Under Management Update
As of 31 December 2024, Clime reported a slight decrease in Funds Under Management (FUM), which stood at $1.6 billion. The FUM includes $428 million in Individually Managed Accounts and $151 million in Clime Capital Limited.
Outlook for FY25
Baragwanath indicated that the upcoming quarter will focus on enhancing product offerings and distribution frameworks while continuing their commitment to client value and innovation.
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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