Orion’s Write-Down on Bentley Raises Questions About Future Profitability
Orion Equities reported a modest loss of $11,051 for the half-year ending December 2025, with net tangible asset backing per share holding steady at $0.42. The company’s investment portfolio, notably in Strike Resources and Bentley Capital, remains central to its financial position.
- Half-year loss of $11,051, down from prior profit
- Stable net tangible asset backing per share at $0.42
- Unrealised gain from Strike Resources shares
- Investment in Bentley Capital written down to nil carrying value
- No dividend declared for the period
Modest Loss Reflects Market Volatility
Orion Equities Limited (ASX: OEQ) has reported a slight loss of $11,051 for the six months ending 31 December 2025, a significant downturn from the $1.24 million profit recorded in the same period last year. Despite this, the company’s net tangible asset (NTA) backing per share remained largely unchanged at approximately $0.42, signalling a stable underlying asset base.
Investment Portfolio Performance
The company’s financial results were chiefly influenced by its holdings in two key investments: Strike Resources Limited (ASX: SRK) and Bentley Capital Limited (ASX: BEL). Orion recorded an unrealised net gain of $100,000 on its 10 million shares in Strike Resources, whose share price rose from 3 to 4 cents during the half-year. This gain partially offset rising personnel expenses, which increased by 28% to $174,113.
Conversely, Orion’s 26.95% stake in Bentley Capital was written down to a nil carrying value due to accumulated losses recognised under the equity method of accounting. This contrasts with Bentley’s market valuation of approximately $410,000 based on its ASX share price, highlighting the accounting conservatism applied. The company noted that should Bentley return to profitability, Orion would recognise a positive carrying value in future periods.
Broader Asset and Operational Overview
Orion’s portfolio also includes a property asset in Mandurah, Western Australia, held for redevelopment or resale and currently rented out. Cash and cash equivalents stood at nearly $4 million, providing liquidity to support ongoing investment activities. The company continues to manage operational, market, and compliance risks through established governance frameworks and policies.
No Dividend Declared, Outlook Uncertain
Reflecting the cautious financial position, the board has not declared a dividend for the half-year. Directors reaffirmed confidence in the company’s ability to meet its obligations and comply with regulatory requirements. However, the company did not provide forward-looking guidance, citing the inherent uncertainties in market conditions and investment performance.
Bottom Line?
Orion’s steady asset backing amid a small loss underscores the delicate balance in LIC portfolios reliant on volatile resource stocks.
Questions in the middle?
- Will Bentley Capital’s performance improve enough to restore its carrying value on Orion’s books?
- How will Strike Resources’ share price movements impact Orion’s future earnings?
- What is the timeline and outlook for Lithium Energy’s ASX reinstatement, given its connection to Orion’s investments?
