WCM Global Growth Limited Reports Strong FY2024 Results and Announces Increased Dividends
WQG (WQG) Share Update August 2024 Thursday 15th
WCM Global Growth Announces Strong FY2024 Results and Increased Dividends
WCM Global Growth Limited (ASX: WQG) has announced impressive financial results for FY2024, including a significant increase in net operating profit and a higher fully franked dividend.
Instant Summary:
- Net operating profit after tax for FY2024: $45.34 million, up from $37.18 million in FY2023.
- Pre-tax NTA per share increased by 19% to $1.744.
- After-tax NTA per share increased by 14% to $1.565.
- Portfolio return of 25.63%, outperforming the MSCI All-Country World Index by 5.69%.
- Increased final dividend of 1.81 cps, fully franked.
- Revised future quarterly dividends ranging from 1.83 cps to 1.91 cps.
Full Year Results
WCM Global Growth Limited (WQG) has reported a net operating profit after tax of $45.34 million for the year ended 30 June 2024. This marks a significant increase from the $37.18 million reported for the previous year. The company's success is largely attributed to the increase in the value of its investment portfolio and the strong performance of its investment advisor, WCM Investment Management, LLC (WCM).
For FY2024, the pre-tax net tangible asset (NTA) value per share rose from $1.465 at the end of June 2023 to $1.744 by the end of June 2024, representing a 19% increase. The after-tax NTA per share also saw a notable rise, increasing by 14% from $1.375 to $1.565 over the same period.
Investment Performance
The company's portfolio achieved a return of 25.63% for FY2024, outperforming the MSCI All-Country World Index (ex-Australia) by 5.69%, which delivered a return of 19.94%. This performance is consistent with the long-term success of the WCM Quality Global Growth Strategy Composite, on which WQG's portfolio is based.
Since its inception in June 2017, the WQG portfolio has returned 14.77% per annum after all fees, compared to the Benchmark's 12.53%. A portfolio valued at $10,000 at the time of the company's initial public offering in June 2017 has now grown to $26,231 as of 30 June 2024.
Dividend Announcements
In light of the company's strong financial results, the Board has announced an increased final dividend of 1.81 cps, fully franked at a 30% tax rate, for the quarter ended 30 June 2024. This is an increase from the previously advised 1.76 cps. The final dividend will be paid on 30 September 2024, with a record date of 13 September 2024.
Additionally, the Board has revised its future dividend intentions, planning to pay fully franked quarterly dividends of 1.83 cps for the quarter ending 30 September 2024, 1.87 cps for the quarter ending 31 December 2024, 1.89 cps for the quarter ending 31 March 2025, and 1.91 cps for the quarter ending 30 June 2025.
Dividend Reinvestment Plan
The company's Dividend Reinvestment Plan (DRP) will be in operation for the fully franked Q4 FY2024 final dividend of 1.81 cps. Shares issued under the DRP for the final dividend will be issued at a 3% discount to WQG's volume weighted average share price. Shareholders must elect to participate in the DRP by 18 September 2024.
Share Buy-back
WQG continued its on-market share buy-back during FY2024, purchasing a total of 12.3 million shares valued at approximately $16.3 million. The buy-back remains in place until 26 June 2025 and is an important capital management initiative aimed at enhancing shareholder value.
Outlook
The Board is pleased with the company's strong investment performance for FY2024, which exceeded its Benchmark return. The investment approach remains sound, and the portfolio is well-positioned for continued long-term growth.
The strong financial results and increased dividends are likely to positively impact WCM Global Growth's stock price. The company's ability to outperform its Benchmark and deliver consistent returns will boost investor confidence. The revised dividend policy, with higher and more frequent payouts, adds further value for shareholders.
Investor Reaction:
Analysts are expected to react positively to WQG's strong financial performance and increased dividends. The company's consistent long-term returns and strategic dividend policy are likely to be well-received by investors.
Conclusion:
Investors should take note of WQG's impressive FY2024 results and the increased dividends. The company's strong financial position and strategic dividend policy make it an attractive investment opportunity. Stay informed on WQG's future performance and consider participating in the Dividend Reinvestment Plan for additional benefits.