Media Release - December 2024 half-years results and update

Key points

• Continued strong revenue trajectory
• On track for profitable FY2025
• Announcement of four new investment mandates

Full summary

K2 Asset Management Holdings Ltd has released its half-year results for the period ending 31 December 2024 (HY25), highlighting the execution of previously guided growth in revenue and the forthcoming return to profitability. Total revenue for the half-year amounted to $2.9 million, an increase of 5% compared to the corresponding 6-months in 2023, resulting in an after-tax loss of $14,890. This represents a marked improvement from the previous period, driven by an increase in new business on the K2 platform as well as a concerted effort to reduce recurring expenses across the business. Pleasingly, post balance date, K2 announced the successful onboarding of four new investment mandates representing approximately $242 million, which is expected to increase the Group's revenue by circa 15% on an annualized basis. Asset Under Management (AUM) continued to grow during the half-year, increasing by 14% for the 12-months to 31 December 2024. The company's diversified financial services offering, including Responsible Entity (RE), Trustee & Administration Services, Exchange Traded (ETF) & Listed Fund Services, and Funds Management & Advisory, contributed to this growth.

Guidance

K2 Asset Management expects to return to profitability in the 2025 financial year, with growth in the Responsible Entity (RE), Trustee & Administration Services, Listed Funds and Exchange Traded Funds (ETFs), and Funds Management & Advisory business lines.

Outlook

The company's primary focus is on achieving profitability and returning dividends to shareholders in the 2025 financial year. K2 continues to build sustainable and diversified revenue lines across its three core pillars, with strong growth expected in the RE, Trustee & Administration Services, ETF and Listed Fund Services, and Funds Management & Advisory business lines.