New Risk • Feb 17
New major risk - Revenue and earnings growth Earnings have declined by 7.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 7.7% per year over the past 5 years. Revenue is less than US$1m (AU$728k revenue, or US$515k). Minor Risk Market cap is less than US$100m (AU$16.7m market cap, or US$11.8m). Declared Dividend • Feb 16
First half dividend of AU$0.024 announced Dividend of AU$0.024 is the same as last year. Ex-date: 18th February 2026 Payment date: 5th March 2026 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. Announcement • Feb 14
ECP Emerging Growth Limited Announces Interim Dividend for the Six Months Period Ended December 31, 2025, Payable on March 5, 2026 ECP Emerging Growth Limited announced interim Dividend of AUD 0.02400000 on ECP - ORDINARY FULLY PAID which will be fully franked for the six months period ended December 31, 2025. Ex Date is February 18, 2026, Record Date is February 19, 2026 and Payment Date is March 5, 2026. Announcement • Oct 24
ECP Emerging Growth Limited, Annual General Meeting, Nov 26, 2025 ECP Emerging Growth Limited, Annual General Meeting, Nov 26, 2025. Location: at offices of ecp asset management, level 4, the pavilion, 388 george street, sydney nsw 2000 Australia Declared Dividend • Aug 16
Final dividend of AU$0.032 announced Shareholders will receive a dividend of AU$0.032. Ex-date: 19th August 2025 Payment date: 3rd September 2025 Dividend yield will be 4.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (1% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 99% to shift the payout ratio to a potentially unsustainable range, which is more than the 1.0% EPS decline seen over the last 5 years. Declared Dividend • Feb 25
First half dividend increased to AU$0.024 Dividend of AU$0.024 is 4.3% higher than last year. Ex-date: 26th February 2025 Payment date: 13th March 2025 Dividend yield will be 4.0%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (28% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 69% to shift the payout ratio to a potentially unsustainable range, which is more than the 6.7% EPS decline seen over the last 5 years. New Risk • Feb 23
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 476% Last year net profit margin: 834% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 2.7% per year over the past 5 years. Revenue is less than US$1m (AU$749k revenue, or US$476k). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (476% net profit margin). Market cap is less than US$100m (AU$25.4m market cap, or US$16.1m). Announcement • Sep 12
ECP Emerging Growth Limited, Annual General Meeting, Nov 21, 2024 ECP Emerging Growth Limited, Annual General Meeting, Nov 21, 2024. Location: at offices of ecp asset management, level 4, the pavilion, 388 george street, sydney nsw 2000 Australia Declared Dividend • Aug 24
Final dividend increased to AU$0.031 Dividend of AU$0.031 is 6.9% higher than last year. Ex-date: 27th August 2024 Payment date: 11th September 2024 Dividend yield will be 3.8%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (11% earnings payout ratio) but not covered by cash flows (dividend approximately 20x free cash flows). The dividend has increased by an average of 20% per year over the past 9 years. However, payments have been volatile during that time. Earnings per share has grown by 30% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Aug 22
ECP Emerging Growth Limited Announces Dividend for the Period of Six Months Ended June 30, 2024, Payable on September 11, 2024 ECP Emerging Growth Limited announced dividend of AUD 0.03100000 per share for the period of six months ended June 30, 2024. The dividend will be payable on September 11, 2024 with Record Date of August 28, 2024 and Ex Date of August 27, 2024. Board Change • Aug 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 2 highly experienced directors. Company Secretary, Alternate Director & CFO Scott Barrett was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Recent Insider Transactions • Jun 02
Insider recently bought AU$379k worth of stock On the 28th of May, Emmanuel Pohl bought around 305k shares on-market at roughly AU$1.24 per share. This transaction amounted to 5.8% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought AU$386k more in shares than they have sold in the last 12 months. Declared Dividend • Feb 26
First half dividend increased to AU$0.023 Dividend of AU$0.023 is 4.5% higher than last year. Ex-date: 28th February 2024 Payment date: 15th March 2024 Dividend yield will be 4.2%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (17% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 9 years. However, payments have been volatile during that time. Earnings per share has grown by 119% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Oct 19
ECP Emerging Growth Limited, Annual General Meeting, Nov 29, 2023 ECP Emerging Growth Limited, Annual General Meeting, Nov 29, 2023, at 12:00 E. Australia Standard Time. Location: Offices of EC Pohl & Co Pty Ltd, Level 12, Corporate Centre One 2 Corporate Court Bundall, Gold Coast QLD 4217 Gold Coast Australia Agenda: To consider financial statements and reports; to consider adoption of directors' remuneration report; to consider change of auditor; to consider Special resolution to change the Constitution of the Company. Reported Earnings • Aug 24
Full year 2023 earnings released: EPS: AU$0.22 (vs AU$0.56 loss in FY 2022) Full year 2023 results: EPS: AU$0.22 (up from AU$0.56 loss in FY 2022). Net income: AU$4.00m (up AU$14.3m from FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Announcement • Aug 22
ECP Emerging Growth Limited Announces Dividend for the Period of Six Months Ended June 30, 2023, Payable on September 12, 2023 ECP Emerging Growth Limited announced dividend for the period of six months ended June 30, 2023 of AUD 0.02900000 per share. The dividend will be payable on September 12, 2023 with Record Date of August 29, 2023 and Ex Date of August 28, 2023. Reported Earnings • Feb 18
First half 2023 earnings released: EPS: AU$0.14 (vs AU$0.062 in 1H 2022) First half 2023 results: EPS: AU$0.14 (up from AU$0.062 in 1H 2022). Net income: AU$2.60m (up 130% from 1H 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 87 percentage points per year, which is a significant difference in performance. Announcement • Feb 17
ECP Emerging Growth Limited Announces Interim Dividend, Payable on March 9, 2023 The Directors of ECP Emerging Growth Limited have resolved to pay an interim dividend of 2.2 cents per share which will be fully franked and will be paid on 9 March 2023. The record date to determine entitlements to the interim dividend 23 February 2023, compared to Interim Fully Franked Dividend paid on 15 March 2022 of 2.1 cents. Announcement • Sep 15
ECP Emerging Growth Limited, Annual General Meeting, Nov 17, 2022 ECP Emerging Growth Limited, Annual General Meeting, Nov 17, 2022, at 13:00 AUS Eastern Standard Time. Location: ECP Asset Management Pty Ltd Level 4, The Pavilion, 388 George Street Sydney New South Wales Australia Agenda: To receive and consider the Company's Annual Financial Reports and the reports of the Directors and Auditor for the year ended 30 June 2022; to consider adoption of directors remuneration report; to consider re-election of director; and. Reported Earnings • Aug 26
Full year 2022 earnings released: AU$0.56 loss per share (vs AU$0.39 profit in FY 2021) Full year 2022 results: AU$0.56 loss per share (down from AU$0.39 profit in FY 2021). Net loss: AU$10.3m (down 245% from profit in FY 2021). Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Aug 25
ECP Emerging Growth Limited Announces Final Dividend, Payable on 14 September 2022 The Directors of ECP Emerging Growth Limited have resolved to pay a final dividend of 2.75 cents per ordinary share fully franked which will be paid on 14 September 2022. The record date to determine entitlements to the final dividend is 31 August 2022. Valuation Update With 7 Day Price Move • May 11
Investor sentiment deteriorated over the past week After last week's 18% share price decline to AU$1.08, the stock trades at a trailing P/E ratio of 7.3x. Average trailing P/E is 16x in the Capital Markets industry in Australia. Total returns to shareholders of 24% over the past three years. Announcement • Feb 24
ECP Emerging Growth Limited Announces Dividend for the Six Months Ended December 31, 2021, Payable on March 15, 2022 ECP Emerging Growth Limited announced fully franked ordinary dividend of AUD 0.02100000 per share for the six months ended December 31, 2021, payable on March 15, 2022. Ex-date is February 28, 2022 and record date is March 1, 2022. Reported Earnings • Sep 26
Full year 2021 earnings released: EPS AU$0.39 (vs AU$0.14 in FY 2020) Full year 2021 results: Net income: AU$7.10m (up 185% from FY 2020). Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 27
Full year 2021 earnings released: EPS AU$0.39 (vs AU$0.14 in FY 2020) Full year 2021 results: Net income: AU$7.10m (up 185% from FY 2020). Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Executive Departure • Jul 13
CFO & Company Secretary Brian Jones has left the company During their tenure, earnings grew by 149% annually compared to the industry average of 8.3%. On the 1st of July, Brian Jones left the company after 6.9 in the role. As of March 2021, Brian still personally held only 6.08k shares (AU$8.8k worth at the time). Brian is the only executive to leave the company over the last 12 months. Reported Earnings • Feb 24
First half 2021 earnings released: EPS AU$0.30 (vs AU$0.10 in 1H 2020) First half 2021 results: Net income: AU$5.52m (up 187% from 1H 2020). Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Dec 14
New 90-day high: AU$1.57 The company is up 30% from its price of AU$1.21 on 10 September 2020. The Australian market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 10.0% over the same period. Is New 90 Day High Low • Nov 09
New 90-day high: AU$1.41 The company is up 24% from its price of AU$1.14 on 11 August 2020. The Australian market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 3.0% over the same period. Is New 90 Day High Low • Oct 13
New 90-day high: AU$1.38 The company is up 22% from its price of AU$1.13 on 15 July 2020. The Australian market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 5.0% over the same period.