ARC Funds Reports $369k Positive Cash Flow and $634k Equity Placement
ARC Funds Limited reports a solid September quarter with a $634,000 equity placement, positive cash flow, and the successful integration of The Term Deposit Shop, positioning itself for further expansion.
- Completed $634k equity placement at 10 cents per share
- Final payment of $230k made for The Term Deposit Shop acquisition
- Positive net cash movement of $369k, ending quarter with $659k cash
- The Term Deposit Shop remains profitable with over $500 million funds under administration
- Managing Director converted $200k loan into equity, signaling confidence
Quarterly Financial Overview
ARC Funds Limited (ASX – ARC) has released its September 2025 quarterly report, highlighting a period marked by strategic capital raising and operational progress. The company successfully completed an equity placement, issuing 6.34 million shares at 10 cents each, raising $634,000 before costs. This capital injection bolstered ARC’s cash position, which closed the quarter at $659,000, reflecting a positive net cash movement of $369,000 despite ongoing expenditures.
Operational cash outflows of $347,000 included staff salaries, legal and advisory fees, administrative costs, and notably, the final working capital adjustment payment of $230,000 related to the acquisition of The Term Deposit Shop (TTDS). This acquisition, completed in May 2025, is now fully integrated into ARC’s portfolio.
The Term Deposit Shop – A Profitable Addition
TTDS, an online platform facilitating cash investments, contributed $154,000 in revenue during the quarter, marking its first full reporting period under ARC’s control. With ARC holding a 63.49% stake, management has taken direct oversight of day-to-day operations. The platform maintains steady funds under administration exceeding $500 million, supported by a loyal client base and recurring revenue streams. Given the robust demand for term deposits in Australia; totaling over $1.2 trillion; ARC aims to significantly expand TTDS’s market share.
Leadership Confidence and Corporate Strategy
Post-quarter, Managing Director and CEO Scott Beeton converted $200,000 of short-term loans into equity, acquiring 2 million shares at 10 cents each. This move underscores executive confidence in ARC’s growth trajectory and provides additional financial support for ongoing initiatives.
Beyond TTDS, ARC’s investment arm, Merewether Capital (72% owned), continues to deliver consistent performance, though specific fund metrics were not detailed in this release. The company is actively pursuing further strategic investments to diversify and strengthen its portfolio, with several opportunities currently under advanced consideration.
Financial Position and Outlook
ARC’s cash flow report reveals a cautious but optimistic financial stance. While the quarter included elevated corporate costs; such as legal expenses not expected to recur; management affirms the company’s ability to maintain operations and meet business objectives. The availability of equity raising capacity and historical investor support provide a buffer for future funding needs.
Overall, ARC Funds appears to be consolidating its recent acquisitions and capital raising efforts to build a platform for sustained growth within the financial services sector, particularly in cash investment solutions.
Bottom Line?
ARC Funds’ strategic acquisitions and capital raises set the stage for growth, but investors will watch closely for execution on new investment opportunities.
Questions in the middle?
- How will ARC accelerate growth of The Term Deposit Shop’s funds under administration?
- What are the specifics and timelines of the new investment opportunities ARC is pursuing?
- How might ongoing corporate costs impact ARC’s cash flow beyond the current quarter?
