Uscom Limited has completed the sale of all its international subsidiaries, recording a significant gain but ceasing trading activities and remaining suspended on the ASX. The company now aims to secure a new business to resume operations.
- Disposal of all international subsidiaries completed for $2.59 million
- Pre-tax gain on disposal of $2.35 million recorded
- Revenue down 38% due to cessation of overseas operations
- Company remains suspended on ASX pending new business acquisition
- Financial report prepared on a non-going concern basis
Strategic Exit from International Markets
Uscom Limited, a medical devices company listed on the ASX, has formally exited its international operations following the sale of all its overseas subsidiaries by 30 November 2025. The transaction, approved by shareholders in November, involved the disposal of entities operating across the USA, UK, Hungary, Singapore, and China, marking a significant shift in the company’s operational footprint.
The sale generated total consideration of $2.59 million, which was primarily used to settle outstanding loans owed to key related parties, including Executive Chairman Professor Rob Phillips and substantial shareholder Jetan Pty Ltd. This disposal resulted in a pre-tax gain of $2.35 million, which substantially contributed to the company’s reported net profit for the half-year period ending 31 December 2025.
Financial Impact and Operational Pause
Despite the gain on disposal, Uscom’s revenue and other income declined sharply by 38% compared to the previous corresponding period, reflecting the cessation of overseas trading activities. The company recorded an operating loss when excluding the disposal gain, highlighting the impact of reduced trading and ongoing corporate costs.
Following the completion of the sale, Uscom ceased all trading activities and prepared its financial statements on a non-going concern basis, anticipating winding up within 12 months. At the reporting date, the company’s remaining assets were limited to cash, a refundable R&D tax asset, and a short-term loan receivable, with all liabilities classified as current.
ASX Suspension and Future Prospects
Uscom remains listed on the ASX but is currently suspended from trading due to concerns over its financial condition and the auditor’s disclaimer of opinion in the prior year. The ASX has granted the company a two-year period to meet listing requirements, failing which it risks removal from the official list.
Management has expressed its intention to acquire a viable business of a similar nature to restore operational continuity and satisfy ASX conditions. Shareholders retain their current holdings and have the option to dispose or increase their shares as the company pursues new opportunities.
Governance and Transparency
The half-year report was independently reviewed by BDO Audit Pty Ltd, which confirmed compliance with accounting standards but highlighted the non-going concern basis of preparation. The directors remain confident in their ability to meet obligations and are actively seeking acquisition targets aligned with shareholder expectations.
Bottom Line?
Uscom’s next chapter hinges on securing a new business to lift the ASX suspension and revive shareholder value.
Questions in the middle?
- What types of businesses is Uscom targeting for acquisition to resume operations?
- How will the company manage cash flow and corporate costs during the suspension period?
- What are the prospects and timeline for ASX reinstatement given current conditions?