Ariadne Australia Ltd reported a modest net profit of $2.8 million for the half-year ended December 2025, underpinned by strong growth in its Orams Group investment and key strategic assets despite foreign exchange headwinds.
- Net profit of $2.8 million for HY26 with total comprehensive income of $4.8 million
- Orams Group’s marine services business drives significant EBITDA growth
- Strong rebounds from Coast Entertainment and Hillgrove Resources
- Foreign exchange losses and FinClear writedown weigh on results
- Declared 0.5 cent interim dividend and continued share buyback program
Solid Profit Amid Currency Challenges
Ariadne Australia Ltd has reported a net profit of $2.8 million for the half-year ended 31 December 2025, a slight improvement over the prior corresponding period. The company’s total comprehensive income rose to $4.8 million, buoyed by strong contributions from its investment portfolio, particularly the Orams Group, Coast Entertainment, and Hillgrove Resources. However, the result was tempered by significant unrealised foreign exchange losses and a writedown in the value of its FinClear investment.
Orams Group Leads the Charge
Ariadne’s 61% indirect stake in Orams Group Ltd and Orams Residential Ltd proved a standout performer, delivering a $2.4 million profit compared to a loss in the previous half-year. Orams Marine Services Ltd, New Zealand’s leading marine maintenance and refit business, saw turnover increase by 19% and EBITDA surge 37%, reflecting its dominant position in the South Pacific superyacht sector. The forward order book remains robust, with bookings extending into 2027 and beyond. Meanwhile, construction of mixed-use commercial buildings at Orams Marine Village is progressing on schedule, with residential development plans advancing through New Zealand’s fast-track approval process.
Strategic Investments Show Resilience
Other key investments also contributed positively. Coast Entertainment Holdings reported a strong recovery with a 21.8% revenue increase and EBITDA more than doubling, marking its third consecutive year of growth. Hillgrove Resources marked a turning point with its first full year of underground production, boosting revenue by 49% and returning to profitability. Ariadne’s investment in Freshxtend International also continued to add value.
Challenges and Governance Concerns
Despite these gains, Ariadne faced headwinds from foreign currency fluctuations, with the NZD and USD weakening against the Australian dollar, resulting in unrealised translational losses of approximately $5.1 million. Additionally, the company took a $2.1 million writedown on its FinClear investment following a lower valuation fundraising. The Clearview Wealth investment remains a drag, with Ariadne opting to liquidate its holding at a price below embedded value. Webjet Group, another significant holding, continues to frustrate investors amid governance issues and a sharp share price decline, despite the consortium’s efforts to drive change.
Financial Position and Capital Management
Ariadne remains financially sound with total assets of nearly $199 million and shareholders’ funds of $163.8 million. The company declared a partially franked interim dividend of 0.5 cents per share and repurchased over 750,000 shares during the period. Substantial tax losses carried forward provide future tax relief potential. Ariadne’s investment in Future Group Australia Holdings reflects confidence in the growing superannuation sector, with the company expanding rapidly and positioning itself for further growth.
Bottom Line?
Ariadne’s steady half-year performance sets the stage for monitoring currency impacts and strategic investment outcomes in the months ahead.
Questions in the middle?
- How will ongoing NZD and USD weakness affect Ariadne’s future earnings and asset valuations?
- What strategic moves will Ariadne pursue to address challenges at Webjet and Clearview?
- Can Orams Group’s residential development and commercial projects deliver the anticipated growth?