• Record Funds Under Management of $657 million, up 1% year-on-year
• Recurring revenue increased by 2% to $5.6 million
• Operating profit from recurring revenue flat at $3.5 million

Microequities Asset Management Group Limited has reported strong financial performance for the first half of FY26, with a 41.1% increase in net profit after tax to $6.66 million. Total revenue from operating activities was $10.7 million, representing a 6.9% increase on the prior corresponding period. The company generated $2.3 million in performance fees, though this was down 21% from the previous period. Funds under management closed at a company record of $657 million, up 1% year on year. Recurring revenue increased by 2% to $5.6 million, while operating expenses were well controlled, delivering an operating profit from recurring revenue of $3.5 million. The company's on-balance-sheet investment activities continued to grow, contributing $2.8 million, or 30.9% of total group profit before tax. The Board has declared a 2.3 cent per share fully franked interim dividend, an increase of 21% over the previous period. The company's balance sheet has been further strengthened, with $6.4 million in cash and net tangible assets of $27.2 million, up 16.2% on the prior corresponding period.

The company expects to see a meaningful contribution to long-term investment performance from three new high-quality investment opportunities secured through a capital raising for its Private Equity strategy in the first half of FY26.

As the company enters the second half of FY26, it expects to benefit from its deep expertise in the technology and software sectors, which have experienced renewed volatility. The company believes periods of uncertainty create attractive opportunities for disciplined, research-driven investors.