The Pinnacle Investment Management Ltd (ASX: PNI) share price is storming higher this morning.
At the time of writing, the ASX 200 company's share price is up 7.6% to $24.78.
The Pinnacle share price was flagged as one of Macquarie's top picks yesterday morning.
The share price increase follows the release of the investment management company's FY25 results after the ASX close on Tuesday afternoon.
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Pinnacle's FY25 results
- Revenue up 34% to $65.5 million
- Share of Pinnacle affiliates net profit up 43% to $129.7 million
- Net profit after tax up 49% to $134.4 million
- Dividends per share up 43% to 60 cents
What happened
For FY25, ended 30 June, the ASX 200 investment management company reported an impressive 49% increase in net profit after tax of $134.4 million.
A key driver of this growth was performance fees earned by 12 Pinnacle affiliates. Post-tax, the share of Pinnacle affiliates net profit was $129.7 million, up 43% compared to FY24.
Performance fees earned by 12 Pinnacle Affiliates, post-tax, contributed $46.6 million of Pinnacle's net profit after tax in FY2025 ($31.2 million in FY24), of which $10.2 million was contributed in the second half of FY25 (2H FY25)
Pinnacle declared a final dividend of 27 cents per share, taking total dividends to 60 cents per share. This is a 43% increase from the payout of 42 cents in FY24.
This was above analyst consensus forecasts of 57 cents per share.
The dividends are franked at 88% to shareholders recorded on the register on 2 September, and payable on 19 September.
The announcement also revealed that for FY25, net inflows were $23.1 billion ($16.4 billion in 2H FY25).
Management commentary on the results
Pinnacle's managing director Ian Macoun said that the company "remain attracted by the growth in private markets and see opportunity to further broaden this capability".
"Equally, we are clear as to the value and indeed necessity of high quality, active investment management in the public markets. Pinnacle will continue to seek and support growth and further opportunities in both."
He also added that Pinnacle "sought to build a platform of Affiliates and investment strategies that enables us to be 'more relevant to more clients, in more countries, more often'."
"We have invested in our distribution and infrastructure capabilities meaningfully to allow us to make this broader range of strategies and products available to a wider range of clients and geographies. We made significant progress on this agenda during FY25 with the addition of three further Affiliates to our platform, bringing further asset class and geographical diversification," he said.
Going forward, Pinnacle is confident that its business is in excellent shape and is optimistic about what "lies ahead".
"We remind shareholders that our earnings and net inflows can moderate during times of market dislocation. We have deliberately sought to build a robust, diverse business that is able to succeed across market cycles," Macoun said.
