Aland Equity Group’s Loss Surges 85% as Revenue Drops 42%, Raises $3.54m Capital

Financial Performance and Revenue Decline

Aland Equity Group Limited, formerly known as Equity Story Group Ltd, has revealed a challenging half-year financial performance for the period ending 31 December 2025. Revenues from ordinary activities fell sharply by 41.7% to $276,343, reflecting a slowdown in the company’s core business areas of investor education, market research, trading insights, and funds management services. This revenue contraction contributed to a substantial increase in the company’s loss after tax, which widened by 84.6% to $1.69 million compared to the previous corresponding period.

Capital Raising and Strengthened Cash Position

In response to the financial pressures, Aland Equity Group successfully completed a fully underwritten pro-rata renounceable rights issue in November 2025, raising approximately $3.54 million at an issue price of $0.01 per share. This capital raising was underwritten by Aland Pty Limited as trustee for The Wanderer Trust, an entity associated with the Group’s Chairman, Alex Brinkmeyer. Additionally, a placement of $1.204 million was secured through a two-tranche share issue, further bolstering the company’s cash reserves. These efforts have significantly improved the Group’s liquidity, with cash and cash equivalents rising to nearly $3 million by the end of the half-year.

Board Restructuring and Leadership Changes

The half-year period saw a notable reshuffle of the company’s leadership. On 1 October 2025, new appointments included Alex Brinkmeyer as Non-Executive Chairman, David Nolan as Managing Director, and Albert Wong AM as Non-Executive Director. Concurrently, several executives resigned, including former CEO Shane White and other key directors. These changes signal a strategic pivot aimed at streamlining operations and strengthening governance. Further appointments followed in November with Alex Baird joining as a Non-Executive Director.

Asset Impairments and Fund Performance

Reflecting a cautious approach to asset valuation, the directors fully impaired goodwill of $525,000 and financial assets of $100,000 related to an unlisted investment. Despite these write-downs, the company’s flagship Equity Story Growth Fund delivered a 4.36% net return over the past 12 months, although this was below the benchmark average of 7.40%. Encouragingly, since its inception in 2023, the fund has outperformed the benchmark by an exceptional 19.84%, highlighting the potential of its proprietary investment methodology.

Outlook and Strategic Focus

Looking ahead, Aland Equity Group remains committed to its core activities while focusing on cost streamlining to improve financial sustainability. The company’s net tangible assets per share have improved to 0.19 cents from a negative 0.84 cents previously, reflecting the impact of recent capital injections. Post-period shareholder approvals included related party share placements and the issuance of performance rights to key directors, aligning management incentives with shareholder interests. The company’s ongoing challenge will be to translate its capital and leadership restructuring into improved operational performance and market confidence.