Key Highlights

  • After-tax loss narrowed to $6.60 million from $9.07 million in FY25
  • Investment portfolio returned -9.86% for the year versus the benchmark's +8.11% gain
  • Final quarterly Dividend of 1.25 cents per share declared, taking FY26 dividends to 5.0 cents
  • Share buyback continued, with 906,890 shares repurchased for $290,893 during the year

NAOS Small Cap Opportunities Company Limited (ASX:NSC) reported an after-tax loss of $6.60 million for the financial year ended 30 June 2026, narrower than the $9.07 million loss recorded in FY25. The result was driven by the performance of the NSC Investment Portfolio, which returned -9.86% for the year, compared with the benchmark S&P/ASX Small Ordinaries Accumulation Index, which returned +8.11% over the same period.

Dividend Declaration

The Board declared a final quarterly dividend of 1.25 cents per share, franked to 50%, for the three months ended 30 June 2026, bringing the FY26 full-year dividend to 5.0 cents per share, also 50% franked overall. Based on the 20 August 2026 closing share price of $0.315, this represents a Dividend Yield of 15.87%, or 18.52% on a grossed-up basis. The company has now declared a total of 43.50 cents per share in dividends since its inception in December 2017.

Share Price Versus Net Tangible Assets

The company's Independent Chair noted that despite the weaker portfolio performance, the share price closed the year at a premium to pre-tax net tangible assets, having started the year at a significant discount. He said several of the company's portfolio holdings have provided positive updates since year-end, and the Board expects a stronger FY27 for shareholders.

Portfolio Commentary

NAOS Asset Management's Chief Investment Officer and Managing Director said the firm takes ownership of the FY26 portfolio result, while stating a belief that the Intrinsic Value of the company's core investments materially exceeds their current carrying value. He pointed to holdings including MOVe Logistics, Big River Industries and MaxiPARTS as businesses entering FY27 with Earnings momentum, and said the company expects a number of catalysts over FY27 that could re-rate the value of these investments.

Capital Management

The company continued its share buyback program during FY26, repurchasing a further 906,890 shares at a total cost of $290,893. Since the buyback program commenced in April 2019, the company has repurchased approximately 37.23 million shares, equivalent to 22.03% of shares on issue. The company's profit reserve stood at 7.9 cents per share as at 30 June 2026, and it continues to offer a Dividend reinvestment Plan under which DRP shares are purchased on-market when shares trade at a discount to net tangible assets, avoiding dilution to existing shareholders.

Conclusion

NAOS Small Cap Opportunities Company's FY26 result reflects a difficult year for its investment portfolio, which underperformed its small-cap benchmark by a wide margin, though the company's after-tax loss narrowed from the prior year and its share price ended the period at a premium to net tangible assets. The company maintained its dividend and continued its share buyback program during the year, with management pointing to earnings momentum in several core portfolio holdings as a basis for its expectation of an improved FY27.