Glennon Small Companies Announces NTA of $0.7079 Per Share as of 16 July 2026

Glennon Small Companies’ Investment Approach and Market Positioning

Glennon Small Companies Limited operates as an investment company focused on assembling and managing a diversified portfolio of small-cap securities. Listed on the Australian Securities Exchange under the ticker GC1, the company’s registered office is located at Level 26, 44 Market Street, Sydney, NSW. Its primary objective is to identify, acquire, and manage holdings in small-cap companies that present attractive growth and value creation opportunities.

The company’s strategy targets the small-cap segment of the Australian equity market, which often has limited analyst coverage and potential for significant capital gains. By regularly publishing NTA valuations, Glennon provides transparency to shareholders about the net asset value backing each share. This consistent reporting fosters investor confidence and enables shareholders to evaluate their investment relative to the underlying asset base.

Before-Tax NTA: Components and Calculation Methodology

The unaudited before-tax NTA of $0.7079 per share reflects the company’s net tangible asset value before accounting for estimated tax on unrealised income and gains. This figure complies with ASX listing rules requiring before-tax NTA disclosure to offer a standardized comparison across listed investment companies. The before-tax NTA includes the full value of deferred tax assets recorded on the balance sheet.

A key element of the before-tax NTA is $0.0764 per share attributed to deferred tax assets, which consist of prior and current years’ tax losses or profits not yet utilised to offset future taxable income. Additionally, the before-tax NTA includes $0.026 per share of accrued interest on convertible loans, recognised at book value rather than fair value for this report. This conservative accounting approach acknowledges interest obligations accrued but not yet paid or converted.

After-Tax NTA: Tax Provisions and Selling Cost Impact

The after-tax NTA of $0.7028 per share represents a more conservative valuation, incorporating all tax balances and an allowance for selling costs. It is calculated using the 25% corporate tax rate applicable to base rate entities under Australian tax law. The difference between the before-tax NTA ($0.7079) and after-tax NTA ($0.7028) reflects the net effect of tax provisions and cost assumptions included in the after-tax figure.

This after-tax NTA is particularly useful for investors assessing the economic value per share if the portfolio were realised and tax liabilities settled. Providing both before-tax and after-tax NTA figures allows shareholders to understand the asset value range and make informed decisions based on their tax and investment profiles. The use of the 25% base rate entity tax rate aligns with the current Australian corporate tax framework and Glennon’s eligibility.

Deferred Tax Assets’ Role in Glennon’s Financial Position

Deferred tax assets form a significant part of Glennon Small Companies’ reported NTA, amounting to $0.0764 per share of the before-tax figure. These assets arise from prior and current tax losses or profits that can be carried forward to reduce future taxable income, lowering future tax liabilities. Recognition of these assets depends on meeting tax law criteria, including ownership continuity and the ability to generate future assessable income.

While deferred tax assets represent real future tax benefits, their realisation timing and extent are uncertain, relying on sufficient future taxable income. Investors should monitor changes in deferred tax assets as potential indicators of shifts in company profitability or tax position.

Accounting for Convertible Loans and Accrued Interest

The NTA includes $0.026 per share of accrued interest on convertible loans recorded at book value rather than fair value. Convertible loans are hybrid instruments with fixed interest and an option to convert debt into equity at a set price. Recognising accrued interest at book value reflects a conservative valuation approach that does not adjust for market fluctuations.

This accounting treatment means the reported NTA may not fully capture the current market value of these instruments. Changes in interest rates or underlying equity values could mean the actual economic value of accrued interest differs from the $0.026 per share reported.

ASX Listing Rules and Regulatory Compliance

Regular NTA disclosures are a critical compliance obligation for listed investment companies under ASX listing rules. These rules require periodic NTA reporting to ensure transparency and enable investors to compare share prices with underlying net asset values. The before-tax NTA of $0.7079 per share is the standardized figure mandated by the exchange, calculated according to ASX guidelines.

Adhering to these reporting requirements supports Glennon’s listing status and the integrity of the listed investment company sector. The detailed notes and methodologies disclosed underline the company’s commitment to transparent, compliant reporting. Investors can rely on these NTA figures as prepared to industry and regulatory standards.

Investment Insights: Evaluating Share Price Versus NTA

For current and prospective investors, Glennon’s reported NTA figures provide a benchmark to assess the company’s share price. A share price trading below NTA may indicate the market values the portfolio less than its net assets, presenting potential value opportunities. Conversely, a premium to NTA may reflect confidence in the management’s stock selection or expectations of future gains.

Regular NTA updates allow shareholders to track changes in the net asset base over time, evaluating the effects of portfolio management, market movements, and fees. This transparency is characteristic of well-managed listed investment companies and supports informed investment decisions.

Tax Implications for Glennon Shareholders

The distinction between before-tax and after-tax NTA is important for different shareholder groups. Tax-exempt investors, such as superannuation funds in concessional accounts, may prioritize before-tax NTA as tax liabilities are less relevant. Taxable investors, especially those in higher tax brackets, are likely to focus on after-tax NTA, which reflects the tax cost upon realisation.

The deferred tax asset position of $0.0764 per share also underscores the importance of tax planning. If the company utilises these tax losses through future income, shareholders may benefit from reduced tax burdens on distributions or gains. Shareholders should consult their own tax advisors regarding the tax consequences of holding or selling Glennon shares, as personal circumstances vary.

Market Outlook and Upcoming NTA Updates

The update released on Friday, 17 July 2026 offers the latest snapshot of Glennon’s net asset position. As a listed investment company, Glennon is expected to continue issuing periodic NTA updates, enabling investors to monitor asset value trends and portfolio performance. The timing and frequency of these updates are typically outlined in the company’s constitution or ASX rules.

Investors and market participants should watch for forthcoming NTA announcements to evaluate whether Glennon’s asset value is increasing or decreasing and to assess management effectiveness. Changes in NTA reflect portfolio performance, management fees, borrowing costs, and operational expenses. Shareholders can stay informed through the company’s investor relations contacts, including joint company secretary Vivien Gacho and the website www.glennon.com.au.