• NPAT and Operating profit increase by +19% & +39% respectively
• Performance fee outlook positive for FY2026
• Board declares final dividend of 2.0 cents per share

Microequities Asset Management Group Limited has reported a solid set of financial results for the year ended 30 June 2025, with a 19.3% increase in NPAT to $7,149,776 and a 39% increase in operating profit to $10,408,1. This was driven by a 5% increase in recurring revenue to $10.7 million and strong cost management. The company's Global Value Microcap Fund delivered an exceptional +25.9% net return to investors, with the 3-year annual compound tracking at +19.8% net of fees, and the fund generated performance fees during the second half of FY2025. The company's ESG-aware Value Earth Fund also had a strong debut year, delivering +14.1%. Despite weak inflows into the asset class across the broader sector, Microequities' strong investment performance supported Funds Under Management (FUM) levels. The company refreshed its business development and client relationship management teams, which are beginning to show early positive results, with July and August gross inflows for the core and satellite strategies reaching $10.8 million. The company's balance sheet also strengthened, with Net Tangible Assets increasing from $21.1 million in FY2024 to $23.4 million as at the close of FY2025. The company has a net cash position of $4.8 million. The board has declared a fully franked final dividend for FY2025 of 2.0 cents per share, bringing the total dividend for the year to 3.9 cents per share. The company enters FY2026 with a confident outlook, underpinned by the strength of its investment portfolios and the expectation of additional performance fees.

The company expects to generate additional performance fees in FY2026 from its Microequities Venture Capital Fund, which delivered performance carry fees during FY2025.

The company enters FY2026 with a confident outlook, underpinned by the strength of its investment portfolios, which comprise assets with sizeable growth runways and significant valuation uplifts. The company also successfully launched its first corporate private credit SPV in early FY2026, which was fully subscribed in six days, representing an excellent risk-adjusted return opportunity for clients. The company will look to build and explore further transactions in the corporate private credit market that have favourable risk-adjusted return profiles for its clients.