RPL -6.7%: A softer than expected FY24 result today with top line revenue below expectations, and growing talk about when they will have another crack at Platinum (PTM), given PTM are languishing around ~60c (they were ~90c when Regal last had a crack).
- FY24 revenue of $257.5 million, up from $105.3 million last year largely due to acquisitions, but below the $288m expected.
- Underlying net profit of $97.5m up nearly 200%.
- 2H24 dividend of 10c per share – double this time last year.
- Funds under management (FUM) of $18.0bn at 31 December 2024, up 64% since 31 December 2023. Stripping our Merricks Capital (+$4.3bn) of acquired FUM, the rest of the stable increased FUM by 25%.
The large growth in the business is a combination or organic growth and acquired growth, with RPL having made multiple acquisitions over the last few years, taking out Taurus Funds Management in November 2023, PM Capital in December 2023, and Merricks Capital & – Argyle Group in July 2024. RPL have $233.7m of cash and liquids at the end of December and are well positioned for growth.
MM remains long RPL in the Emerging Companies Portfolio
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