Pacific Current Group Limited

FY26 underlying NPAT was AUD 14.8 million, down 43% from AUD 26 million in the prior year. Total underlying income was AUD 25.1 million, down 48%, with boutique income of AUD 7.1 million and interest income of AUD 16.8 million. Underlying EPS was AUD 0.502, down 10%; total overheads fell 41% to AUD 9.4 million; corporate overheads were AUD 5.4 million; and cash earnings/underlying pretax cash earnings were AUD 14.4 million, equal to 91% of underlying profit before tax. Statutory net loss after tax was AUD 1.5 million versus a profit of AUD 58.2 million in FY25. Total dividends were AUD 0.48 per share, up 12%, and statutory NAV at 30 June was AUD 13.96 per share while fair value NAV was AUD 16.18 per share, up 4% year over year. Funds under management ended at AUD 26.4 billion, down from AUD 30 billion. For FY27, management said interest expense and investment management fees roll off entirely, there is scope for further material expense reduction, and the company will continue capital returns and assess strategic options.

Michael Clarke framed FY26 as another year of transition toward a simpler, more transparent business with lower costs, no debt, and ongoing shareholder returns. He emphasized that the board is now formally reviewing strategic alternatives after receiving the River Capital proposal, including progressing that deal, selling the company, or delisting and realizing assets. His tone was confident but measured, repeatedly stressing that no decision has been made and that any outcome must maximize value for shareholders.

Ron Patel highlighted the earnings base as reshaped by prior boutique realizations and capital returns. He pointed to the decline in underlying NPAT to AUD 14.8 million, the 41% drop in overheads to AUD 9.4 million, interest expense falling from AUD 6.7 million to AUD 2.6 million after debt repayment, and underlying earnings per share of AUD 0.502, supported by lower shares outstanding. On the balance sheet, he said corporate net assets increased to AUD 274.9 million, cash and short-term deposits rose to AUD 157.7 million, liabilities fell 89% to AUD 8.6 million, and realization proceeds funded the debt repayment, buybacks and dividends.

Analysts focused on the valuation uplift in ROC Partners, the treatment of Abacus bonds, and whether the River Capital proposal implied an attractive valuation gap versus PAC’s fair value NAV. Management said the ROC uplift reflected both a stronger fundraising outlook and a more consistent valuation framework across the portfolio. On Abacus, they said exit timing depends on price, the bonds are monitored regularly, and they would only consider selling before maturity in 2028 if there were a sufficient premium over the roughly $25 face value. On the River proposal, Michael Clarke repeatedly stressed that the process is early, that the board has made no decision, and that the strategic review will assess multiple paths with adviser support.