Clime Capital Reports $3M Profit, $15.6M Cash, and 1.35c Dividend Guidance

Clime Capital’s FY25 Financial Snapshot

Clime Capital Limited (ASX – CAM) has unveiled an encouraging unaudited profit after tax of approximately $3 million for the fiscal year ending June 30, 2025. This result comes despite a notable $1.9 million interest expense related to convertible notes, underscoring the company’s resilience amid financing costs. The firm’s cash position remains robust at $15.6 million, complemented by a substantial profit reserve of $33.3 million, positioning Clime Capital with a solid financial foundation as it moves forward.

Dividend Outlook and Shareholder Returns

In a move likely to please investors, the Board has signaled its intention to declare a September quarter dividend of no less than 1.35 cents per share, with a 50% franking credit. This dividend guidance reflects confidence in the company’s ongoing earnings capacity and commitment to delivering shareholder value. The franking balance, while modest at $0.4 million, supports this payout and highlights prudent tax management.

A Strong Start to FY26

July trading results provide an early positive indicator for the new fiscal year, with Clime Capital reporting an unaudited pre-tax profit of approximately $4.4 million. This strong start suggests momentum is building, potentially setting the stage for continued profitability. The company plans to provide a more detailed update alongside its monthly net tangible assets (NTA) report, offering investors further insight into operational performance.

Convertible Notes and Capital Strategy

Alongside its earnings update, Clime Capital has notified noteholders of a new issuance of 6.5% convertible notes, which will pay monthly interest. This capital raising initiative indicates a strategic approach to balancing growth funding with manageable cost of capital. Investors will be watching closely to understand the potential dilution impact and how these notes fit into the broader capital structure.

Looking Ahead

The company expects to release its audited FY25 results and formally declare the September quarter dividend in late August. These forthcoming announcements will be pivotal in confirming the unaudited figures and providing clarity on the company’s financial trajectory. With a solid cash position, profitable trading, and a clear dividend policy, Clime Capital appears well-positioned to navigate the year ahead.