Flagship Investments Limited - Annual Financial Performance Review - 30 June 2024
FLAGSHIP INVESTMENTS LIMITED (FSI) Share Update August 2024 Friday 9th
Flagship Investments Reports Significant Increase in NTA Backing and Portfolio Performance
Flagship Investments Limited (ASX: FSI) has reported a remarkable increase in its net tangible asset (NTA) backing per share and impressive portfolio performance for the financial year ending 30 June 2024.
Instant Summary:
- NTA backing per share increased by 21% to 251.7 cents per share.
- Portfolio performance surged by 29%, significantly outperforming the ASX All Ordinaries Index's 8.3% increase.
- Total comprehensive income rose by $5,698,000 due to changes in the fair value of investments.
- Performance fee payable to the Manager increased to $2,656,000.
- Comprehensive earnings per share doubled from 20.4cps to 42.4cps.
NTA Backing and Dividends
As of 30 June 2024, Flagship Investments Limited reported a net tangible asset (NTA) backing per share of 251.7 cents, up from 208.0 cents per share the previous year. This represents a 21% increase, achieved after the payment of dividends totaling 9.5 cents per share, which amounted to 4.6% of the opening NTA value.
Portfolio Performance
Flagship Investments' portfolio delivered a stellar performance, with a 29% increase over the financial year. This is in stark contrast to the ASX All Ordinaries Index, which only saw an 8.3% rise. The company's focus on quality growth stocks has paid off, with investee companies continuing to grow earnings despite challenges such as high interest rates, a tight labor market, and inflationary pressures.
Income and Performance Fees
Total comprehensive income for the year increased by $5,698,000 due to changes in the fair value of investments after tax. Consequently, a performance fee of $2,656,000 is payable to the Manager, reflecting a $1,595,000 increase from the previous year. This fee, although impacting the stated net profit and earnings per share (EPS), is put into perspective when considering the overall performance of the business.
Comprehensive Earnings
Flagship Investments reported comprehensive earnings per share of 42.4cps, doubling from 20.4cps in the previous year. The company's investment strategy remains focused on selecting quality companies with the potential to grow earnings and dividends over three to five years, ensuring continued growth in future dividends and capital appreciation within the portfolio.
The significant increase in NTA backing and portfolio performance is likely to positively impact Flagship Investments' stock price. The company's ability to outperform the market and deliver substantial returns to investors will boost investor confidence. However, the increased performance fee may slightly offset these gains in the short term.
Investor Reaction:
Analysts are expected to react positively to Flagship Investments' strong performance. The company's focus on quality growth stocks and its ability to navigate challenging market conditions have been key drivers of its success. Investors may view this as a sign of robust management and a solid investment strategy.
Conclusion:
Investors should consider Flagship Investments' impressive performance and strategic focus on quality growth stocks when making investment decisions. The company's continued ability to deliver strong returns and grow its NTA backing makes it a compelling option for long-term investment. Stay tuned for further updates and strategic developments from Flagship Investments.