AGM recap: CEO observations, portfolio performance and positioning
Quick read:
- Alison Gibson, CEO and Managing Director of Mirrabooka, outlined her key areas of focus for Mirrabooka, including refining the investment process and broadening awareness of the Company's value proposition.
- The investment team provided an update on performance, market conditions for small and mid-caps, and portfolio activity.
- The AGM also covered valuation trends, takeover activity and the potential implications of artificial intelligence for portfolio companies.
CEO address
At Mirrabooka’s AGM, CEO and Managing Director, Alison discussed her return to Mirrabooka and areas of focus.
Explaining her decision to rejoin the Company, Alison pointed to Mirrabooka's shareholder-focused purpose, experienced and high calibre team, and ability to provide a low-cost, actively managed portfolio of quality Australian and New Zealand small and mid-cap companies. Alison highlighted that the opportunity to work directly for shareholders and contribute to long-term investment outcomes was a key factor in her return.
Looking ahead, Alison identified opportunities to build on these strengths. She highlighted the importance of continuing to refine the investment process and respond to changing market conditions, while also effectively communicating Mirrabooka's value proposition to current and future shareholders.
Mirrabooka is currently trading at a discount to net asset backing, with investors having the opportunity to buy an actively managed portfolio of quality small and mid-cap companies at 90 cents in the dollar (as at 5 October 2026).
Mirrabooka's investment philosophy has always focused on quality companies, strong management teams, sound balance sheets and long-term investing. Those principles have continueed to underpin the portfolio during challenging market conditions to deliver long-term value for shareholders.
FY26 results and understanding recent performance
The team provided a recap on FY26 performance. Profit for FY26 increased to $13.0 million, up from $7.9 million in the previous corresponding period. The Board maintained the final dividend at 6.5 cents per share and declared a 3.0 cent special dividend, bringing total dividends for the year to 14 cents per share, fully franked.
Fully franked dividends remain an important component of shareholder returns. Since commencing the payment of special dividends in FY13, the Company has paid a total of 57 cents in special dividends, fully franked. The Company continues to maintain reserves that can support dividend continuity through market cycles.
Portfolio Manager, Kieran Kennedy, acknowledged factors that contributed to the portfolio’s underperformance in a challenging year, including the significant divergence between resources and industrials and the valuation de-rating experienced across several growth-oriented holdings.
Mirrabooka's long-standing preference for quality industrial companies has historically supported strong returns, offering more consistency than the resources benchmark in the medium- to long-term. There is confidence that the current environment provides a supportive foundation for future returns.
Market update
At the AGM, Kieran discussed recent market conditions, including important structural market changes. He shared that the growth of passive or benchmark-aware investments is magnifying performance volatility across stocks and sectors.
Kieran also noted that significant valuation de-rating has since occurred in quality growth businesses, despite continued earnings growth across a number of portfolio holdings. The investment team remains confident that earnings growth and business quality are the most significant share price drivers in the long-term, and believes current valuations provide a more attractive starting point for future returns.
Assistant Portfolio Manager, Stuart Low, discussed the increase in takeover activity across the small and mid-cap market, including bids for Cleanaway, Equity Trustees and Tourism Holdings. He noted that recent volatility has created opportunities for patient, long-term investors to acquire quality businesses at attractive valuations, while recognising it has reduced the pool of opportunities as quality industrial businesses leave the market.
Alongside these valuation and market structure themes, the investment team also discussed a factor increasingly influencing investor thinking across many sectors: artificial intelligence (AI). Acknowledging that concerns around disruption have contributed to weaker valuations across several technology-enabled businesses, the investment team shared that companies such as CAR Group, REA Group and SEEK remain well positioned due to their dual-sided markets, the value of their unique data and their ability to interface with evolving AI tools.
Portfolio update and positioning
Sharing updates on recent portfolio activity, Stuart highlighted new additions including Ramsay Health Care, ASX and Cochlear, where share-price weakness created opportunities in high-quality businesses with strong market positions.
Positions in Charter Hall, JB Hi-Fi and SEEK were increased, reflecting the team's conviction in quality businesses affected by higher interest rates and softer economic conditions.
Where market weakness creates more attractive entry points, Stuart pointed toward emerging opportunities to increase Mirrabooka's existing position in quality companies with strong outlooks.
Looking ahead
Moving into FY27, the Company is confident about the quality of the portfolio and the opportunities emerging across the small and mid-cap market. Mirrabooka remains committed to delivering improved outcomes for shareholders through disciplined, long-term investing.
Shareholders can view the full AGM presentation for further information.