Orams Drives 70% EBITDA Growth as Ariadne Posts $5.2M Nine-Month Loss

Orams Group Drives Operating Momentum

Ariadne Australia Limited (ASX:ARA) has reported a robust performance from its New Zealand-based Orams Group, with turnover climbing 30% and EBITDA surging 70% over the nine months to 31 March 2026. Orams Marine Services, a leader in marine maintenance and refit services, also recorded a net profit after tax of NZ$6.4 million, a fourfold increase on the prior corresponding period. The boost reflects streamlined financing after introducing a partner in late 2024 and a more favourable interest rate environment, underpinning a solid forward order book extending well into 2027.

Currency Volatility Weighs on Reported Results

Despite Orams’ strong operational showing, Ariadne’s overall financials were dragged down by significant unrealised foreign exchange losses. With more than half of the Group’s gross assets denominated in foreign currencies, primarily New Zealand dollars and US dollars, the weakening of both currencies against the Australian dollar led to a $5.1 million translational loss in the half-year ended December 2025. This trend continued into the first quarter of 2026, adding roughly $2.5 million more in unrealised foreign exchange impacts, largely affecting the Group’s investment in Orams. Ariadne emphasises these are non-cash accounting adjustments that do not reflect any deterioration in the underlying asset quality.

Investment Portfolio Faces Market Headwinds

The Group’s listed investments also faced headwinds. Webjet shares dropped from $0.88 to $0.53, slashing Ariadne’s valuation by approximately $6.9 million through Profit or Loss. Meanwhile, Hillgrove Resources and Coast Entertainment Holdings declined modestly, resulting in combined valuation decreases of nearly $3.8 million recognised through Other Comprehensive Income. These market-driven declines add to the pressure on Ariadne’s reported earnings, even as the Group remains well diversified.

However, there are bright spots. Ariadne’s stake in Cover Genius is positioned for a substantial uplift following a fundraising round at a valuation materially above the Group’s current carrying value of $11.4 million. If completed as proposed, this could add about $4.5 million to Ariadne’s portfolio value, lifting the implied worth of its remaining holding to $15.9 million. This represents a nearly sixfold return on the original $2.9 million invested, after partial realisations in recent years. Additionally, Ariadne exited its ClearView investment in March, generating $3.5 million in cash proceeds and a $0.5 million uplift since December 2025.

Estimated Loss Reflects Non-Cash and Market Factors

Combining these factors, Ariadne estimates a total comprehensive loss attributable to members of approximately $5.2 million for the nine-month period, a reversal from a $4.8 million profit in the prior half-year. The loss breaks down evenly between a $2.6 million net loss through Profit or Loss and a $2.6 million net loss through Other Comprehensive Income. These figures are drawn from preliminary unaudited management accounts and are sensitive to ongoing foreign exchange fluctuations. Notably, the Group’s cash position remains strong at $23.3 million as of 31 March 2026.

This update follows Ariadne’s earlier $2.8M Half-Year Profit Boosted by Orams where Orams’ performance and strategic investments underpinned a modest profit despite currency headwinds, illustrating the continued operational strength amid volatile market conditions.