MIRRABOOKA INVESTMENTS LIMITED (ASX:MIR) has lifted full-year profit by 63.6% to A$13.0 million and declared a 3.0-cent special dividend, taking total fully franked dividends for FY2026 to 14.0 cents per share.
Revenue from operating activities increased 36.1% to A$15.5 million, while net profit per share rose to 5.8 cents from 4.0 cents in the previous corresponding period.
The company maintained its final dividend at 6.5 cents per share, fully franked, alongside the special dividend. Both will be paid on August 21, 2026, to shareholders registered at July 31. Including the 4.5-cent interim dividend, total distributions rose from 11.0 cents per share last year to 14.0 cents.
"Financial year 2026 was one of the more challenging periods in Mirrabooka’s 27-year history on a relative basis. The part of the market Mirrabooka focuses on saw a large divergence of returns across sectors as momentum and short-term investment themes drove many parts of the market higher," Assistant Portfolio Manager, Stuart Low said.
"In this context, mid and small resources were very strong whereas mid and small industrial indices returns were negative. Mirrabooka has minimal exposure to mining companies. The areas of the market that we mainly invest in had a more challenging environment with weaker consumer confidence, higher energy prices, inflationary pressures, and uncertainty following the federal budget in May all impacting companies within the portfolio. This was overlayed with a significant valuation de-rating in software businesses on the perceived disruption risk to business models from AI advancements."
Stronger investment and options income
The improved result was supported by investment income of A$13.4 million, up from A$10.7 million, while the trading portfolio contributed A$1.4 million compared with A$500,000 a year earlier.
Income from Mirrabooka’s options portfolio increased to A$2.1 million from A$600,000. The company also recorded A$20.4 million in realised gains after tax from profitable portfolio sales, compared with A$26.5 million in FY2025.
Despite the profit growth, portfolio performance was affected by limited exposure to the strongly performing resources sector and a valuation de-rating across several emerging growth and technology holdings.
The portfolio returned negative 10.8% after costs and including franking for the year, compared with a 7.8% return from the combined S&P/ASX Mid Cap 50 and Small Ordinaries Accumulation benchmark. Mirrabooka said its long-term return remained ahead of the benchmark, delivering 11.6% per annum since inception in April 1999 compared with 8.5%.
Portfolio repositioning continues
Major acquisitions during the year included ASX Ltd (ASX:ASX), CAR Group, Web Travel Group, Vista Group International, Winton Land, Australian Ethical Investment, REA Group and SEEK.
Mirrabooka also exited Lynas Rare Earths following its entry into the ASX 50, as well as Infomedia and Ampol, while reducing holdings in Cobram Estate Olives and Peet as valuations increased.
The company said near-term market visibility remained limited because of volatile macroeconomic and geopolitical conditions, but recent valuation falls across several core holdings could improve future return potential.
About Mirrabooka
Mirrabooka is a listed investment company focused on Australian and New Zealand small and mid-cap businesses. Its objective is to provide shareholders with attractive income and capital growth over the medium to long term at a low cost.
The company’s largest holding at June 30 was Macquarie Technology Group, representing 7.0% of the portfolio, followed by ALS and CAR Group at 3.7% each. Its top 20 investments accounted for 54.3% of the total portfolio, excluding cash.