In a volatile Australian earnings season, the Australian Growth Fund fell -5.7%, underperforming the benchmark index which fell -3.7%. The majority of sectors on the ASX delivered negative returns, with information technology (-12%) and Healthcare (-8%) the worst sectors overall. There was also wide dispersion of returns for companies within the same sector.

oOH!Media (+29%) was our best performing investment in the month. It reported a 7% increase in adjusted earnings for 2024. This was largely expected by investors. However, it was management's positive outlook commentary that excited the market. OOH!Media's revenue in the first two months of 2025 picked up to +14% on the prior year. Overall, with some major new contracts commencing for the company, growth prospects are looking brighter for the year as a whole.

Johns Lyng (-28%) delivered a disappointing set of results and a downgrade to full year guidance. In its core Australian division in New South Wales (NSW), insurer Suncorp has been slow in reallocating work to Johns Lyng after previously pausing allocations in NSW on the back of poor execution by Johns Lyng. The impact was compounded by benign weather conditions which has led to lower jobs across the industry. Johns Lyng has taken decisive action and replaced the heads of the relevant businesses. While Suncorp has started re-allocating jobs to Johns Lyng in NSW, the market is cautious in appraising how quickly these volumes can revert to normal levels.