Pacific Current Group Ltd reported a 43% decline in underlying net profit after tax to AUD 14.8 million for the year ended June 30, 2026, compared with AUD 26 million in the prior corresponding period. Total underlying income fell 48% to AUD 25.1 million, driven by a 67% drop in interest income to AUD 16.8 million.
Statutory net loss after tax widened to AUD 1.5 million from a profit of AUD 58.2 million in FY25. Corporate overheads declined 41% to AUD 9.4 million, while interest expense dropped 61% to AUD 2.6 million. Underlying earnings per share fell 10% to 50.2 cents, though total dividends rose 12% to AUD 0.48 per share, including a fully franked interim dividend of 20 cents and a final dividend of 28 cents.
Funds under management decreased to AUD 26.4 billion from AUD 30 billion, reflecting portfolio adjustments including the sale of stakes in Victory Park Capital, Janus Henderson Group, and Abacus Global Management. Cash and short-term deposits increased by AUD 19.8 million to AUD 157.7 million, while corporate net assets rose to AUD 174.9 million.
The company completed a AUD 22.9 million share buyback program, repurchasing over 2.2 million shares, and fully repaid its senior secured debt facility with WHSP. Three new secured loan facilities were arranged between December 2025 and February 2026, with interest rates ranging from 10% to 11% and total drawn amounts of AUD 14.6 million as of June 30.
Michael Clarke, managing director, described FY26 as a year of successful transition, citing capital management initiatives and debt eradication. Ron Patel, chief financial officer, noted that interest income now covers corporate overheads more than threefold. The company’s share price rose 4.63% to AUD 11.98 following the results, with a dividend yield of 5.29% and a five-year total shareholder return of 18.4%.
Looking ahead, management expects cost savings of approximately AUD 4 million in FY27, primarily from reduced interest expense and investment management fees.
