Queste Communications reported a slight operating cash outflow in January 2026 but ended the month with a solid cash position supported by financing activities and investments.
- Net operating cash outflow of A$13,000 in January 2026
- Cash and cash equivalents stood at A$3.988 million at month end
- Received A$15,000 from convertible debt securities and A$20,000 from borrowings
- Holds 59.86% interest in Orion Equities Limited, consolidated in cash flows
- Unused loan facility of A$122,000 available for future funding
Overview of January Cash Flows
Queste Communications Ltd has released its monthly cash flow report for January 2026, revealing a modest net operating cash outflow of A$13,000 for the month. Despite this slight negative operating cash flow, the company’s overall cash position improved due to financing activities, ending the month with nearly A$4 million in cash and equivalents.
The report consolidates cash flows from Queste and its controlled entity, Orion Equities Limited (OEQ), in which Queste holds a 59.86% stake. This consolidation reflects the intertwined financial activities of both entities and provides a clearer picture of the group’s liquidity.
Financing and Investment Activities
During January, Queste raised A$15,000 through convertible debt securities and secured an additional A$20,000 from borrowings. These inflows helped offset the operating cash outflows and contributed to the net increase in cash for the month. The company also maintains an unused loan facility of A$122,000, providing a buffer for future funding needs.
Investing activities were minimal, with only a small outflow of A$1,000 recorded, indicating a cautious approach to capital expenditure or acquisitions during this period. The company’s investment portfolio includes significant holdings in listed entities such as Bentley Capital Limited and Strike Resources Limited, which are considered liquid assets to supplement cash reserves.
Liquidity and Operational Outlook
Queste’s cash and cash equivalents at the end of January stood at A$3.988 million, a robust position that supports ongoing operations without immediate pressure to raise additional capital. The company’s loan agreement with OEQ, allowing advances up to A$450,000 at 10% interest, remains a strategic financial tool to manage liquidity.
Payments to related parties amounted to A$21,000 during the month, a figure that warrants monitoring but is disclosed transparently in line with regulatory requirements. The company’s executive leadership, including Executive Director Victor Ho, has authorised the release of this report, affirming its compliance with accounting standards and ASX listing rules.
Looking Ahead
While January’s operating cash flow was slightly negative, the overall financial position remains stable. The company’s conservative investment and financing strategy appear to be maintaining liquidity effectively. Investors will be watching subsequent monthly reports for any shifts in operating cash flow trends or changes in financing arrangements that could signal evolving strategic priorities.
Bottom Line?
Queste’s strong cash reserves and prudent financing keep it well-positioned, but ongoing monitoring of operating cash flows is essential.
Questions in the middle?
- Will Queste’s operating cash flow improve in coming months or continue to show modest outflows?
- How might related party payments evolve, and what impact could they have on governance perceptions?
- Could Queste leverage its loan facility with OEQ more aggressively to fund growth or acquisitions?