FY24 Full Year Results

• Returned to operating profit in FY25 after restructure
• Statutory loss of $3.8 million due to non-cash charges
• Targeting minimum $2 million annual operating profit

Clime Investment Management Limited (ASX: CIW) has reported a statutory loss of $3.8 million for FY24. This loss was driven by an operating loss of $1.6 million (before non-cash amortisation and depreciation), $1.36 million in non-cash amortisation and depreciation charges, and $0.85 million in non-cash asset impairment. The company also incurred a $0.46 million loss from the divestment of its adviser licensing business (Madison), which also consumed significant non-direct overheads estimated at around $1 million. Following the sale of Madison and the restructure of Clime's operations, the Board is pleased to advise that the company has now returned to operating profit in the opening months of FY25. Shareholders should note that there are further divestment costs to be expensed in FY25, however these are well covered by operating cashflows. The divestment of Madison was effected by the receipt of a $2 million 3-year convertible note issued by Infocus Wealth Management Limited that yields 8%. This income plus normal balance sheet revenue should ensure at least $300k in non-operating revenue is also generated. The Board is targeting a minimum $2 million annual operating profit, with confidence stemming from the significant reduction in operating costs, the discontinuance of losses from Madison, and the growth in funds under management and investment mandates reported in recent months. CIW is pursuing further mandate opportunities and working to grow the business to a level where operating margin approaches 30%, which is regarded as an operating target for FY26.

Targeting minimum $2 million annual operating profit

Returned to operating profit in FY25 after restructure, targeting operating margin of 30% by FY26