WAM Capital Limited reported a net loss from ordinary activities after income tax of $125.9 million for the year ended 30 June 2026, down 157.3% compared to the prior year. This substantial loss reflects significant mark-to-market declines across the company’s portfolio holdings, a sharp reversal from the positive portfolio performance recorded in recent years. The loss came alongside a decline in revenue from ordinary activities of 145.5%, which fell to $161.9 million before tax expense.
Despite the annual loss, WAM Capital’s long-term track record remains the key message in this announcement. The company’s investment portfolio has delivered 14.5% per annum returns since its inception in August 1999, outperforming the relevant benchmark index by 6.0% per annum over that period. This performance justifies the company’s positioning to investors as an active manager focused on undervalued growth companies in the small-to-medium cap space, suggesting the portfolio managers have navigated difficult market cycles before.
The net tangible asset backing per share declined materially, falling to $1.22 before tax from $1.40, and to $1.57 after tax from $1.67. This reduction directly reflects the portfolio declines that generated the reported loss. Investors will watch whether this NAV per share figure stabilises or recovers over the next reporting period, as it represents the underlying value backing each share in the company.
The dividend position signals management confidence in the underlying portfolio despite the difficult year. The company maintained dividends at 15.5 cents per share for the full year, distributed as two interim payments of 7.75 cents each, both carrying 60% franking. Looking ahead, management has targeted 8.0 cents per share for the full year 2027, representing a modest reduction that reflects the lower earnings base. The Dividend Reinvestment Plan remains active, allowing shareholders to reinvest at a 2.5% discount to the four-day volume weighted average price from the ex-dividend date.
The challenging year evident in these results raises questions about portfolio composition and positioning. WAM Capital’s focus on small-to-medium sized growth businesses means exposure to cyclical sectors that typically underperform during market downturns. The company’s historical performance advantage over the index suggests the managers have positioned for recovery, but investors should watch for signals in the next update on how the portfolio has been adjusted and whether recent weakness has created fresh opportunities that could drive outperformance in the recovery period ahead. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About WAM Capital Limited (ASX: WAM)
WAM Capital is a listed investment company managed by Wilson Asset Management that operates on the Australian Securities Exchange. It functions as a closed-end investment fund, investing in a diversified portfolio of shares and securities for its shareholders. The company is headquartered in Sydney, Australia and is part of the S&P/ASX 200 index with a market capitalization of approximately A$1.9 billion.
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