Powerhouse Ventures Accelerates Growth with Aliwa Acquisition and NTA Surge

Quarterly Performance and Asset Growth

Powerhouse Ventures Limited (ASX: PVL) has delivered a compelling update for the quarter ending 31 December 2024, reporting a significant uplift in net tangible assets (NTA) to 10.4 cents per share. This increase, subject to audit, reflects a $3.1 million growth from the previous quarter, driven by a combination of strategic acquisitions, investment gains, and active portfolio management.

The company’s trading division contributed a net gain of $173,000 from listed investments, while a successful merger involving its carbon project developer Revaia added approximately $2.7 million in valuation uplift. These results underscore PVL’s ability to capitalise on market dislocations and emerging growth sectors.

Strategic Acquisition of Aliwa Funds Management

December marked a milestone with the completion of the acquisition of Aliwa Funds Management, instantly positioning PVL as a functioning funds management business. Combining Aliwa’s portfolio with PVL’s existing assets, the funds management division now oversees more than $30 million across microcap and venture capital strategies. This acquisition aligns with PVL’s strategic pivot towards generating predictable annuity revenue streams alongside transactional profits.

The integration of Aliwa’s operations is expected to accelerate capital raising efforts in the second half of FY25, providing a solid foundation for scaling funds under management and expanding advisory services.

Enhanced Regulatory and Advisory Capabilities

PVL also finalised the acquisition of an Australian Financial Services License (AFSL) during the quarter, internalising licensing costs and enhancing operational flexibility. This move not only reduces expenses but also enables the company to broaden its advisory and funds management ecosystem, including servicing other licensees and funds.

The advisory division has begun to gain traction, securing its first mandates in capital raising, M&A advisory, and investor relations. Leveraging network effects from its funds management and strategic shareholders, PVL aims to maintain a lean cost structure while delivering incremental profits from advisory activities.

Active Investment Portfolio and Market Positioning

PVL’s investment strategy continues to focus on sectors experiencing short-term market dislocation and emerging growth frontiers such as carbon projects, advanced materials, and next-generation AI technologies. The company realised $790,000 in cash from the sale of its CourseLoop investment following a takeover by Technology One, generating a gain of $355,000 over the June 2024 carrying value.

Further, PVL increased its stake in Quantum Brilliance following a government-backed funding round, reaffirming confidence in quantum technologies and advanced chip fabrication materials. The company also invested $200,000 in Metal Powder Works, a US-based producer of metal powders for additive manufacturing, facilitating its acquisition by K-TIG Ltd, expected to relist on the ASX in March 2025.

Financial Position and Outlook

At quarter-end, PVL held $2.05 million in cash with no debt and $0.9 million in listed assets. The company generated net free cash of $231,000 during the quarter, balancing operating cash outflows with gains from investment activities. The board remains confident in the carrying values of all assets, with formal valuations to be confirmed in the upcoming half-year results.

Looking ahead, PVL’s transition from a pure investment company to a diversified funds management and advisory business marks a strategic evolution designed to deliver sustainable shareholder value amid ongoing market volatility.