Microequities Asset Management Group Limited (ASX:MAM), an Australian investment management firm specialising in listed industrial small and microcap companies, has released its FY25 financial results, showcasing significant growth in key metrics. The company reported a 19% increase in Net Profit After Tax (NPAT) to $7.1 million and a 39% increase in operating profit to $10.4 million. Recurring revenue also saw a positive movement, rising by 5% to $10.8 million, while performance fee income jumped by 222% to $3.7 million. This strong performance has allowed the board to declare a fully franked final dividend of 2.0 cents per share, bringing the total dividend for FY25 to 3.9 cents per share.
The results were underpinned by strong investment performance that supported Funds Under Management (FUM) levels, even amidst broader sector weakness. Microequities CEO Carlos Gil noted that the FY25 results provide a solid foundation as the company progresses toward its strategic objectives. Operating expenses relative to recurring revenue also improved by 131 basis points, indicating enhanced operational efficiency. The company successfully launched its first corporate private credit SPV early in FY26, which was fully subscribed in six days.
Looking ahead to FY26, Microequities anticipates further performance fees, driven by the strength of its investment portfolios. The company’s diversification strategy, including the Microequities Venture Capital Fund launched in 2016, is expected to contribute to future performance. The newly launched SPV represents an excellent risk adjusted return opportunity for its clients. Microequities aims to explore additional transactions in the corporate private credit market that offer favourable risk-adjusted returns.
The board has authorised the release of this announcement, expressing gratitude to clients, shareholders, and colleagues for their continued support. Microequities highlighted that its offering has grown substantially over the past decade and with a more diversified product suite, it is no longer reliant on one or two products to generate performance fees.