DGR Leads a Week of Control Disputes, Cash Strain and Fund Suspensions

DGR Global (ASX:DGR) was the week’s biggest reported mover, rising 6.90%. Australian Bond Exchange Holdings (ASX:ABE) followed with a 3.70% gain, while Pengana International Equities (ASX:PIA) rose 2.74%. The gains came despite serious questions about control, cash and future capital needs.

Control disputes drive the leaders

DGR’s rise came as the Takeovers Panel found that Nicholas Mather, Paul Simpson and related entities had built combined voting power of 45.43%. The Panel also found breaches of takeover and disclosure rules. Final orders could decide how the affected purchases are treated and whether some votes can be used. Until then, restrictions prevent several parties from dealing in relevant DGR shares without permission.

Pengana International Equities completed a buy-back that cancelled 151.1 million shares at $1.2132 each. That left about 106.9 million shares on issue and removed three directors. The smaller board will review future capital needs before deciding on a rights issue, which would ask existing investors for more money. The Takeovers Panel ended a separate challenge without ruling that the buy-back was lawful, so the dispute could return if circumstances change.

Small companies still face cash tests

Australian Bond Exchange reported better revenue and a smaller loss. Yet it finished the year with only A$249,000 in cash, net liabilities of A$1.43 million and A$2 million of convertible notes due from April 2027. Its share price rose during the week, but early gains evaporated after trading reopened at 2.9 cents. The stock then fell 3.45%. Investors still need evidence that the improved business can produce enough cash to meet future payments.

WT Financial Group delivered its sixth straight year of growth, with earnings before interest, tax, depreciation and amortisation rising 19.5% to $8.2 million. It also held $16.8 million in cash and declared fully franked dividends totalling one cent per share. However, the stock was flat for the week and fell 3.12% after reopening at 16 cents. The market is weighing stronger cash generation against higher provisions and debt.

Suspensions leave investors waiting

Metrics Master Income Trust (ASX:MXT) and Metrics Real Estate Multi-Strategy Fund (ASX:MRE) remained suspended after failing to lodge audited accounts. MXT’s audited statements were still outstanding, while MRE gave no timetable for its filing. Metrics Income Opportunities Trust (ASX:MOT) also faced uncertainty over its accounts and the value of its underlying investments. Investors cannot trade until ASX decides that the information is complete and orderly trading can resume.

Other funds showed how quickly reported profits can change. Barramundi Limited (NZX:BRM) posted its worst result in two decades, with a NZ$42.9 million loss and an 18.2% fall in adjusted net asset value. Marlin Global (NZX:MLN) lost NZ$17.3 million while its benchmark gained 30.5%. By contrast, Liberty Group (ASX:LFG) lifted profit 8% to A$143.8 million and declared a 15-cent special dividend. Its result still depends on loan repayments and the size of future credit losses.

Data and market risks remain visible

OFX Group (ASX:OFX) investigated unauthorised access to data linked to some clients and job applicants. The company said it had found no access to client accounts or funds, and no financial loss had been reported. The investigation remains incomplete, with Australian and overseas regulators notified.

Global funds also delivered uneven results. Bitcoin, India and robotics products posted large swings in asset values, while geared Nasdaq exposure produced a strong annual profit before its latest net asset value fell more than 10%. These funds can change quickly because their results depend on share prices, currencies and, in some cases, borrowed money.