Queste Communications Ltd (ASX:QUE) reported a modest company-level profit for H1 2025 but a consolidated loss driven by challenges in its associate investments, notably Bentley Capital Limited. The company’s financial performance remains closely tied to the share price movements of Strike Resources Limited.
- Company-level profit of $140,934 down 37% from prior period
- Consolidated entity reports $57,471 loss, reversing previous profit
- Investment in Bentley Capital Limited written down to nil carrying value
- Financial results influenced by Strike Resources Limited share price
- No dividend declared; strong cash position maintained
Queste Communications’ Half-Year Snapshot
Queste Communications Ltd (ASX:QUE) has released its half-year financial results for the period ending 31 December 2025, revealing a nuanced performance split between the standalone company and its broader consolidated group. While the company itself recorded a modest profit of $140,934, down 37% from the previous corresponding period, the consolidated entity; which includes controlled entity Orion Equities Limited (ASX:OEQ) and associate Bentley Capital Limited (ASX:BEL); reported a net loss of $57,471, a significant reversal from a $1.18 million profit a year earlier.
Associate Investment Challenges
The consolidated loss primarily stems from the accumulated losses recognised in Bentley Capital Limited, an associate entity accounted for under the equity method. Queste’s total interest in Bentley stands at 28.56%, combining direct and indirect holdings. Due to Bentley’s ongoing net losses, Queste has reduced the carrying value of its investment in Bentley to nil, reflecting a cautious accounting approach amid continued underperformance. Despite this, Bentley’s market price remains modestly positive, suggesting potential for future recovery should Bentley return to profitability.
Market-Driven Performance and Key Holdings
Queste’s consolidated financial results are heavily influenced by the performance of Strike Resources Limited (ASX:SRK), in which Orion holds 10 million shares and Bentley holds over 53 million shares, collectively representing a 22.46% relevant interest. Strike’s share price fluctuated between 2.8 and 5.2 cents during the half-year, closing at 4 cents as of 31 December 2025. The company’s exposure to Strike underscores the sensitivity of Queste’s financial outcomes to commodity market dynamics and resource sector sentiment.
Operational and Financial Position
Queste maintains a strong cash position of approximately $4 million and holds investments valued at over $1.6 million at market prices, predominantly in Orion Equities and Bentley Capital. The company did not declare any dividends for the half-year, reflecting a conservative capital management stance amid market uncertainties. The directors reaffirm their confidence in the company’s ability to continue as a going concern, supported by prudent risk management policies addressing operational, market, and compliance risks.
Looking Ahead
While the half-year results highlight challenges, particularly with associate investments, Queste’s diversified portfolio and strategic holdings in resource and investment companies position it to navigate evolving market conditions. Investors will be watching closely for developments in Bentley’s turnaround prospects and Strike Resources’ share price trajectory, both of which will materially impact Queste’s consolidated performance in the coming periods.
Bottom Line?
Queste’s next chapter hinges on the recovery of its associate investments and resource sector momentum.
Questions in the middle?
- Can Bentley Capital Limited reverse its losses and restore value for Queste?
- How will Strike Resources’ share price movements influence Queste’s consolidated results?
- What strategic moves might Queste pursue to mitigate associate investment risks?