Queste’s November Cash Flow: A$53K Operating Outflow, A$4M Cash Reserves
Queste Communications reported a slight net cash outflow from operations in November 2025 but maintains robust liquidity supported by a substantial loan facility and liquid ASX-listed investments.
- Net cash used in operating activities of A$53,000 for November
- Cash and equivalents increased marginally to A$4.0 million
- Loan facility of A$450,000 with A$324,000 drawn and 10% interest rate
- Holdings in ASX-listed securities valued at approximately A$1.8 million
- Estimated funding runway exceeds 75 months based on current cash flows
Operating Cash Flow and Liquidity Overview
Queste Communications Ltd released its monthly cash flow report for November 2025, revealing a net cash outflow of A$53,000 from operating activities for the consolidated entity. Despite this modest operational cash burn, the company’s cash and cash equivalents slightly increased by A$1,000 to a total of A$4.0 million, reflecting a stable liquidity position.
The report consolidates Queste’s financials with its controlled entity, Orion Equities Limited (OEQ), in which it holds a 59.86% interest. This consolidation provides a comprehensive view of the group’s cash movements and financial health.
Funding Facilities and Investment Portfolio
Queste Communications benefits from a loan facility agreement with OEQ, allowing advances up to A$450,000, of which A$324,000 has been drawn. The unsecured loan carries an interest rate of 10% per annum and matures at the end of 2026, providing a flexible funding source to support ongoing operations.
In addition to cash reserves, Queste holds liquid investments in ASX-listed securities valued at approximately A$1.8 million, primarily shares in Orion Equities Limited and Bentley Capital Limited. These assets serve as a financial buffer, enhancing the company’s ability to manage cash flow fluctuations and meet its business objectives.
Operational Outlook and Financial Strategy
The company’s estimated funding availability, combining cash and unused financing facilities, supports an operational runway of over 75 months based on current cash flow trends. This extended runway underscores Queste’s strong liquidity position despite the current net operating cash outflows.
Management affirms confidence in continuing operations, citing access to loan facilities and the ability to liquidate ASX-listed investments if necessary. The company also disclosed payments to related parties totaling A$32,000 during the month, a detail investors will watch closely for governance and compliance considerations.
Overall, Queste Communications appears well-positioned to navigate near-term operational demands while maintaining financial flexibility through its investment holdings and credit arrangements.
Bottom Line?
Queste’s solid liquidity and access to financing provide a strong foundation, but ongoing operational cash flow trends warrant close monitoring.
Questions in the middle?
- Will Queste’s operating cash outflows stabilize or improve in coming months?
- How might fluctuations in the market value of ASX-listed investments impact liquidity?
- Are there plans to reduce reliance on related party payments or increase transparency around them?
