The Regal Partners Ltd (ASX: RPL) share price is lifting on Monday after the financial services company posted its results for the half year ended June 30, 2024.
Regal shares are currently swapping hands at $3.51 apiece, almost 3% higher on the day as investors digest the company's numbers.
Meanwhile, the S&P/ASX 200 index (ASX: XJO) is 0.49% higher at the time of writing.
Let's see what the investment manager put up.
Image source: Getty Images
Regal Partners share price up on solid half-year results
Key takeouts from Regal's FY24 period include:
- Revenues were up 212% year over year to $148.5 million.
- Funds under management (FUM) grew 50% year over year to $16.5 billion.
- Net client inflows increased by 106% year-on-year to $745 million.
- Statutory net of $50.2 million, with normalised net profit surging 349% to $59 million.
- Performance fees reached $59.6 million.
- Declared a fully franked dividend of 8 cents per share, up 60% year over year.
What else happened in H1 FY24?
The Regal Partners share price performed well during the first half of 2024. The business also posted decent growth, with revenues up 212% and FUM up 50% compared to H1 last year.
At the end of the period, Regal's FUM reached $16.5 billion.
Net client inflows more than doubled to $745 million, underscored by the "establishment of a new long/short separately managed account, two new mandates received across Regal's long/short equities strategies", and the "ongoing demand" for its new Private Fund.
Two consecutive quarters of more than 10% positive performance likely helped the cause as well.
The company also acquired Merricks Capital, a hard asset lending specialist, and took a 40% stake in Argyle Group, a water leasing business.
Regal finished the half with $197 million in net cash, cash receivables, and investments.
These results prompted the board to pay a dividend of 8 cents per share, up 60% on last year's interim payment.
What did management say?
Regal Partners CEO and managing director Brendan O'Connor commented on the company's performance:
Regal Partners is pleased to announce its 1H24 financial result, with the business benefitting from excellent investment performance delivered across a range of strategies and asset classes, alongside continued momentum in FUM growth with $745 million in net client inflows received over the six months to 30 June 2024.
Together, on a pro forma basis, the business now manages over $16.5 billion in FUM, supported by a growing number of institutional investors, family offices and private investors across Australia and offshore.
Our balance sheet remains exceptionally strong, with $197 million of net cash, cash receivables and investments and after our interim dividend, with the business remaining well positioned to deliver on our long-term growth ambitions.
What's next?
Looking ahead, Regal Partners is focused on continuing to deliver strong investment performance across its alternative strategies.
It aims to drive an "increase in investment capability, as well as accelerating diversification of FUM by asset class and investment".
Per CEO O'Connor:
We continue to remain focused, above all else, on delivering superior performance to our investors across our growing range of leading alternative investment strategies and delivering great outcomes for shareholders.
Regal Partners share price snapshot
The Regal Partners share price is in the green on Monday following the release of its H1 FY24 results.
Over the past 12 months, the stock has rallied 41%, outpacing the broad market by more than 28% in that time.
