Queste Communications Posts $185k Profit Before Tax, Consolidated Profit Falls 89%

Company Profit Climbs Despite Consolidated Earnings Slip

Queste Communications Ltd (ASX:QUE) reported a modest profit before tax of $184,872 for the financial year ended 30 June 2026, a 66% increase over the prior year’s $111,504. The company itself, excluding its controlled entities, managed to lift revenues by 29% to $748, driven largely by a 50% gain on financial assets.

However, the consolidated entity, which includes the 59.86%-owned Orion Equities Limited (ASX:OEQ), saw its net profit plunge 89% to $107,703. This drop was principally due to an 11% fall in total revenues to $186,077 and a near elimination of gains on financial assets, with a $1 net loss recorded compared to nearly $100,000 loss the previous year. Orion’s $400,000 fair value gain on its investment property in Mandurah, Western Australia, partially offset these declines.

Investment Property and Market Valuations

Orion’s investment property was independently valued at $2.5 million as at 30 June 2026, up from $2.1 million the previous year, contributing significantly to the consolidated profits. Meanwhile, Queste’s market value of shareholdings in Orion and associate Bentley Capital Limited (ASX:BEL) rose to $1.7 million from $1.42 million a year earlier.

Despite the accounting carrying values, the market values of these investments remain a key metric for shareholders assessing the company’s underlying asset strength.

Capital Management and Share Buy-Back

Queste maintained its issued capital at 27,072,332 fully paid ordinary shares, all listed on the ASX. The company initiated an unmarketable parcel share buy-back targeting shareholders holding less than a $500 marketable parcel, representing about 0.93% of total shares. The buy-back price was set at $0.052 per share, reflecting the volume weighted average price over the five days to the record date, enabling small shareholders to exit without brokerage costs.

This move aims to reduce administrative costs associated with maintaining numerous small holdings and streamline the shareholder base.

Governance and Remuneration Highlights

Directors Farooq Khan, Victor Ho, and Yaqoob Khan voluntarily suspended their salaries for the year, reflecting efforts to conserve cash amid modest profits. The board continues to manage operational, market, and compliance risks with established policies and oversight.

Queste’s executive team holds significant stakes across related entities, with Chairman Farooq Khan holding over 5.3 million shares in Queste and serving as executive chairman for Bentley, Orion, Strike Resources (ASX:SRK), and LE Minerals (ASX:LEL), underscoring intertwined leadership across their investment portfolio.

Outlook and Future Considerations

The company did not declare a dividend for FY2026, maintaining a cautious stance amid fluctuating investment returns. Queste intends to continue its investment activities, though directors note the inherent uncertainties in forecasting market and investment performance.

With Orion’s investment property valuation up and ongoing developments in associate investments like Bentley and LE Minerals, investors will be watching for how these holdings contribute to future consolidated earnings. The unmarketable parcel buy-back also signals a focus on shareholder register efficiency, potentially impacting liquidity and trading dynamics.