Benjamin Hornigold Posts 238% Revenue Rise and 41% Lower Loss in FY2026

Revenue Growth Masks Continued Losses

Benjamin Hornigold Ltd (ASX:BHD) reported a significant 238% jump in revenue to $619,134 for the year ended 30 June 2026, up from $182,994 the previous year. Despite this surge, the company remains loss-making, posting a $420,931 net loss after tax, a 41% improvement from the $709,247 loss in FY2025. The return on average capital employed improved from -11% to -7%, signalling some operational progress but still falling short of profitability.

Legal Settlements Boost Cash Position Post-Year End

After the reporting period, Benjamin Hornigold secured $2.6 million from settlement deeds with former directors, $800,000 in late July and $1.8 million in early August 2026. These settlements provide a notable cash injection, arriving just as the company recorded $3.78 million in cash and cash equivalents at year-end, up from $3.15 million in 2025. However, the company also received a default judgment against JB Markets Pty Ltd for nearly $9 million, which it values at zero due to the debtor’s financial distress, underscoring ongoing challenges in recovering certain assets.

Impaired Loans and Investments Cloud Asset Quality

Benjamin Hornigold’s balance sheet reveals $2.94 million in investments measured at fair value through profit or loss, down from $3.37 million the prior year. Crucially, a convertible loan of nearly $5 million remains in default and fully written down to nil, reflecting the company’s cautious stance on recoverability. The company is actively pursuing legal action to recover loans totaling over $8.6 million from former related parties, including JB Financial Group Limited and John Bridgeman Ltd, but acknowledges the uncertain prospects of these recoveries.

Expense Growth and Stable Governance Costs

Operating expenses increased, with professional fees rising 31% to $685,687, driven largely by legal costs that jumped 50% to $565,697. Directors’ fees remained stable at $308,000, reflecting fixed remuneration without performance incentives. The board’s remuneration framework continues to focus on fixed fees aligned with market standards, with no bonuses or equity-based payments awarded during the year.

Shareholder Equity and Dividend Policy

Net tangible assets per share edged down slightly to $0.24 from $0.25, consistent with the ongoing losses. The board declared no dividends for FY2026 or the prior year, maintaining a conservative capital approach amid uncertain asset recoveries and ongoing litigation. Issued capital remained unchanged at 24.15 million shares, with modest on-market acquisitions by some directors.