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  • Microequities Asset Management (MAM) has bolstered revenue, increase profits and doubled its dividend for the first half of the 2021 financial year
  • The company increased revenue for the six-month period to the end of December 2020 by 70 per cent to $6.7 million
  • Recurring revenue grew by 8 per cent to $3.3 million, while profit after tax jumped a neat 140 per cent to $4.8 million for the half-year
  • As such, Microequities has declared a 2-cent-per-share interim dividend — double what the company paid out at the end of the 2020 financial year
  • MAM specialises in investing in ASX-listed companies with a market cap below $250 million and global listed companies with a market cap below US$300 million (roughly A$385 million)
  • Shares in Microequities Asset Management gained 9.43 per cent today to close worth 58 cents per share

Microequities Asset Management (MAM) has bolstered revenue, increase profits and doubled its dividend for the first half of the 2021 financial year.

The fund manager increased in value by almost a tenth on the ASX today following the release of its latest half-yearly financial report.

In the report, MAM highlighted a 70 per cent increase in revenue for the six-month period, coming in at $6.7 million compared to roughly $4 million at the same time the year before.

Recurring revenue was $3.3 million at the end of December 2021 compared to $3.04 million the year before — not as dramatic an increase, but still 8 per cent higher nonetheless.

This all translated to a healthy 140 per cent increase in profit after tax for the half-year, which came in at just under $4.8 million at the end of 2020 compared to just under $2 million over the prior corresponding period.

As such, Microequities has declared a fully franked two-cent-per-share interim dividend. For reference, the 2020 financial year’s final dividend was one cent per share, fully franked.

The record date for the interim dividend is March 1, 2021, and shareholders will be paid out on March 12, 2021.

Looking ahead

MAM management said for the remainder of the 2021 financial year, the company will be reshaping its marketing approach and upscaling its marketing and sales resources to increase market awareness and distribution reach of its invested funds.

While market volatility is still high, the company believes its investment management team is still underinvested in several “excellent long-term undervalued growth businesses” that will drive the performance of MAM’s investment funds in the future.

MAM specialises in investing in microcaps companies — in this instance referring to ASX-listed business with a market cap of less than $250 million and global listed companies with a market cap of less than US$300 million (roughly A$385 million).

Shares in Microequities Asset Management gained 9.43 per cent today to close worth 58 cents per share. The company has a $70 million market cap.

MAM by the numbers
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