London City Equities flags record year with net assets per share hitting 91.4 cents
London City Equities (ABN 59 003 200 664) has flagged a record year, providing preliminary unaudited guidance for its financial year to 30 June 2026 that points to record assets and profits.
The company reported a net gain during the year of $4.965m, up from $3.179m in FY25. Net assets per share rose to 91.4 cents from 78.6 cents, while shareholders’ equity climbed to $29.03m from $24.616m.
These figures remain preliminary and unaudited, having been passed to auditors HLB Mann Judd for their review. The headline takeaway for investors is the roughly 16% lift in Net Assets per share over the period.
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FY26 results snapshot: net worth movement and balance sheet
The strong result was driven primarily by the income account, which contributed $8.050m during the year. This offset a net decline in investment values of $2.303m, producing the record net gain for the period.
| Metric | FY26 ($000) | FY25 ($000) | Commentary |
|---|---|---|---|
| Investment Values – Net Gain (Decline) | (2,303) | 3,149 | Net decline in the period |
| Income Account | 8,050 | 500 | Primary driver of the result |
| Dividend Paid | (782) | (470) | Distribution to shareholders |
| Net Gain during Year | 4,965 | 3,179 | Record level |
| Shareholders’ Equity (June) | 29,030 | 24,616 | Record level |
| Net Assets per Share | 91.4c | 78.6c | Up approximately 16% |
| Shares on Issue | 31,742 | 31,304 | Modest increase |
The period also saw new capital raised of $199k and a Future Income Tax Benefit (FITB) reduction of $750k.
Two portfolio events that defined the year
Two portfolio catalysts shaped London City’s FY26 performance, with both delivering material gains during the period.
Fiducian Group exit banks $5.6m capital gain
The final sale of the company’s 7% shareholding in Fiducian Group concluded total proceeds of some $21m. The October 2025 sale produced a capital gain of $5.6m.
London City’s involvement in Fiducian began around twenty years ago. Directors attributed the exit to strong stock-market conditions and an overweight portfolio status, stating the outcome confirms the validity of the company’s investment criteria.
Excelsior Capital liquidation returns over $8m in franked dividends
London City owns 9% of Excelsior Capital. Following a Federal Court action, agreement was reached that Excelsior would liquidate and return all funds to shareholders, in an internally managed process.
Two fully franked dividends were paid in March and April 2026, with London City receiving over $8.0m. The company awaits further news on the remaining funds.
Directors noted that Excelsior’s final capital return came in below book cost. However, they consider the solid dividend payouts and related franking credits exceed any adverse impact arising from that shortfall.
Directors report that London City has concluded what has been a very satisfactory year. Both assets and profits rose to record levels.
Record liquidity: a war chest for the next opportunity
The company now holds record levels of liquid funds, all trading-bank related. This positions the balance sheet with substantial flexibility, though management has disclosed no specific deployment plans.
Key balance sheet figures for FY26 (versus FY25) include:
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Cash and equivalents: $25,151k (up from $11,367k)
-
Investment Portfolio – Equities: $3,706k (down from $14,587k)
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Total Assets: $29,350k
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Net Assets: $29,030k
The sharp rise in cash reflects the proceeds from the Fiducian exit and the Excelsior dividend payouts, leaving the company with a considerable cash position heading into the new financial year.
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Outlook and next steps
The preliminary unaudited results now proceed to audit by HLB Mann Judd. The company continues to await further news on the remaining Excelsior funds.
Beyond the pending Excelsior residual return and completion of the audit, no further guidance or targets were disclosed. London City closes the period with net assets per share of 91.4 cents and a strengthened net asset position underpinned by record liquid funds.
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