Barramundi Limited Analysis

Overview

Barramundi is a listed investment company that invests in growing Australian companies. The Barramundi portfolio is managed by Fisher Funds, a specialist investment manager with a track record of successfully investing in growth company shares. The aim of Barramundi is to offer investors competitive returns through capital growth and dividends, and access to a diversified portfolio of investments through a single tax-efficient investment vehicle. Barramundi listed on the NZX Main Board on 26 October 2006 and may invest in companies that are listed on the Australian Securities Exchange (with a primary focus on those outside the top 20 at the time of investment) or unlisted companies.

Performance

The following information was extracted from Barramundi's half year results, released on 22 February 2024;

Barramundi delivers strong interim result

• Net profit for the six months ended 31 December 2023 $17.0m
• Total shareholder return 8.1%
• Adjusted NAV return (after expenses, fees & tax)2 8.8%
• Dividends paid during the period (cents per share) 2.88 cps

NZX listed investment company Barramundi Limited (NZX: BRM) today announced a first half profit (for the 6 months ended 31 December 2023) of $17.0m.

Key elements of the half year result include profits on investments of $17.6m, dividend and interest income of $2.1m, less operating expenses and tax of $2.6m.

Chair of Barramundi, Andy Coupe said: “Barramundi has made a positive start to the 2024 year. Although ongoing political tension internationally has persisted, market conditions have improved overall, influenced by receding inflationary concerns (both in Australia and internationally) and a resilient domestic economy in Australia.”

The portfolio’s gross performance return3 for the six months was 10.3% and the adjusted net asset value (NAV) return2 was 8.8%, compared to the S&P/ASX 200 Index (hedged 70% to the NZD)4 which was 7.7% over the same period.

Barramundi investors continued to receive distributions consistent with the company distribution policy (2% of average NAV per quarter) with 2.88 cents per share paid to shareholders during the six months ended 31 December 2023. On 21 February 2024, the Board declared a dividend of 1.45 cents per share to be paid to shareholders on 28 March 2024 with a record date of 7 March 2024.

Senior Portfolio Manager, Robbie Urquhart said: “The improved macro-economic backdrop has somewhat mitigated investor concerns about the momentum of the slowing economy. Against this backdrop, a range of our portfolio companies including internet and technology businesses as well as more cyclical industrial companies have also reported strong earnings growth, bolstering their financial returns in the period. This more than offset some earnings softness, due to idiosyncratic