1H22 Financial Results for the Half Year Ended 30 June 2022
Regal Partners Limited (ASX:RPL) is pleased to report the company’s interim results for the six months ended 30 June 2022. This is the inaugural result for the company post the merger between Regal Funds Management Pty Limited and Regal Partners Limited (formerly VGI Partners Limited), which completed on 3 June 2022.
- Statutory 1H22 Net Profit after Tax (NPAT) attributable to RPL shareholders of $4.9m1
- Pro forma normalised 1H22 NPAT attributable to RPL shareholders of $20.1m2
- Total Funds Under Management (FUM) as at 30 June 2022 of $4.7bn (post distributions and reinvestments)3
- Performance fees of $22.7m despite challenging market conditions; fund performance has improved since 30 June 2022, leading to FUM of $4.8bn as at 31 July 2022
- Integration of the merged businesses is progressing well; lead portfolio management duties for VG8 transitioned to Philip King in June
- Robust and liquid balance sheet; no debt
- No interim dividend declared given the recent 39.7cps fully franked special dividend and growth opportunities ahead (e.g. Private Credit expected to launch 2H22). The Board is mindful of finding a balance between providing capital gains and income to RPL shareholders and in future years currently intends to target a dividend payout ratio of at least 50% of normalised NPAT. In any period, the actual payout ratio will be subject to various factors, including the general business environment, future funding requirements, capital management initiatives and taxation considerations.
- The Board intends for dividends to be franked to the fullest extent possible.
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1 Statutory NPAT has been accounted for under the principles of reverse acquisition accounting. The results for the half year ended 30 June 2022 reflect Regal Funds Management for the period from 1 January 2022 to 3 June 2022, and the newly formed combined Regal Partners Limited consolidated group results of Regal Funds Management including VGI Partners Limited for the period from 4 June 2022 to 30 June 2022.
2 Pro forma normalised NPAT (for the half year ended 30 June 2022 and the prior corresponding period) has been prepared on the basis that the merger completed on 1 January 2021 and excludes one-off and some non-cash items (e.g. amortisation of contract assets and unrealised gains and losses on investments).
3 FUM for the group (including 100% of Kilter Rural, Attunga Capital and Gresham Royalties Management) includes non-fee earning funds.