ASX Re-Compliance Deadline Puts H&G High Conviction’s Listing at Risk

A Turning Point After Divestment

H&G High Conviction Limited (ASX – HCF) has reported a markedly improved financial position for the half-year ended 31 December 2025, posting a loss after tax of just $50,794 compared to a substantial $1.17 million loss in the previous corresponding period. This improvement follows the company’s strategic divestment of its investment assets in April 2025, which has shifted its focus towards cash management and exploring new avenues to unlock shareholder value.

Managing Cash and Charting a New Course

With investment assets sold, HCF’s principal activity has transitioned to managing its cash reserves and evaluating strategic alternatives. The company earned $3,374 in interest income during the half-year, reflecting returns on its cash holdings. Operating expenses remained modest at $54,164, underscoring a lean cost structure as the company navigates this interim phase.

The board is actively considering a range of options including potential new investments, corporate transactions, recapitalisation strategies, and capital management initiatives. These efforts aim to maximise shareholder returns while adapting to the company’s transformed business model.

ASX Re-Compliance Deadline Looms

HCF faces a critical juncture with the Australian Securities Exchange granting an extension until 16 March 2026 to demonstrate sufficient operational activity to maintain its listing. Failure to meet these re-compliance requirements is likely to result in suspension of trading. Should delisting occur, the company intends to continue pursuing strategic alternatives as an unlisted entity, though this would represent a significant shift in its market presence and investor accessibility.

Board Changes Signal New Direction

The half-year period saw notable changes in the boardroom. Alexander (Sandy) Beard and Angus Murnaghan were appointed as Executive Chair and Non-executive Director respectively in April 2025, bringing extensive experience in investment and corporate advisory. Phillip Christopher joined as a Non-executive Director in December 2025, while long-serving director Nicholas Atkinson resigned the same month. These changes reflect a refreshed leadership team focused on steering the company through its strategic transition.

Dividend Pause Reflects Strategic Focus

Consistent with its current phase, HCF did not declare a dividend for the half-year ended December 2025. The company retains franking credits of over $1.19 million, which could support future dividend payments should profitability and cash flow improve. For now, preserving capital to fund strategic initiatives appears to be the priority.

As HCF navigates this period of uncertainty and opportunity, investors will be watching closely for announcements on new investments, recapitalisation plans, and progress towards ASX re-compliance.