Queste’s Modest Operating Deficit Raises Questions on Future Cash Flow
Queste Communications Ltd reported a stable cash position with A$4.055 million in reserves at the end of September 2025, despite a slight net cash outflow from operations. The company’s financing activities provided a modest boost, underpinning its liquidity.
- Net cash outflow from operating activities of A$11,000 for September
- Positive net cash inflow of A$15,000 from financing activities
- Cash and cash equivalents total A$4.055 million at month-end
- 59.86% ownership of Orion Equities Limited consolidated in cash flows
- Loan facility of A$450,000 available from Orion Equities Limited
Stable Cash Position Despite Operating Outflows
Queste Communications Ltd has released its monthly cash flow report for September 2025, revealing a modest net cash outflow of A$11,000 from operating activities for the consolidated group. This small operational deficit contrasts with a positive net cash inflow of A$15,000 from financing activities, resulting in a stable overall cash position.
At the end of the month, the company held cash and cash equivalents of A$4.055 million, supported by unused financing facilities of A$130,000. This liquidity buffer provides a comfortable runway for ongoing operations and potential investment opportunities.
Consolidation of Orion Equities Limited Bolsters Financials
The report consolidates cash flows from Queste Communications and its controlled entity, Orion Equities Limited (OEQ), in which Queste holds a 59.86% interest. This relationship is significant, as OEQ’s financial activities directly impact Queste’s consolidated cash flow position.
Notably, Queste’s investment portfolio includes substantial holdings in OEQ and Bentley Capital Limited, with market values of approximately A$1.59 million and A$24,500 respectively. These liquid assets supplement the company’s cash reserves and provide additional financial flexibility.
Loan Facility and Related Party Payments
The company disclosed a loan agreement with OEQ, allowing OEQ to advance up to A$450,000 to Queste. This unsecured loan, accruing interest at 10% per annum and maturing in December 2026, adds a layer of financial support. The report also notes payments to related parties amounting to A$23,000, though details on the nature of these transactions remain limited.
Compliance and Forward Outlook
Queste Communications confirmed compliance with relevant accounting standards and ASX listing rules. The company’s estimated months of funding available, based on current cash flow and liquidity, stands at an impressive 338 months, underscoring a strong financial foundation. While the report does not provide explicit guidance on future cash flows, the current position suggests operational stability.
Bottom Line?
Queste’s solid cash reserves and financing arrangements position it well for sustained operations, but investors will watch closely for future operating cash flow trends.
Questions in the middle?
- What is the strategic rationale behind the payments to related parties and their potential impact?
- How will Queste leverage its loan facility with Orion Equities to support growth or operations?
- Will operating cash flows improve in coming months to reduce reliance on financing activities?
