Key Highlights

  • Consolidated cash stood at $2.80 million at 31 October 2026, down from $2.86 million at the start of the month and $3.81 million at the start of the financial year.
  • Parent company cash was $15,000 at month end, and the group's cash balance sits largely within its controlled entity, Orion Equities Limited.
  • A $450,000 Unsecured Loan Facility from Orion Equities carries interest at 10% a year and matures on 31 December 2027.
  • Listed share holdings were valued at $713,606 at 31 October 2026, with Orion Equities shares making up most of that amount.

Queste Communications Ltd (ASX:QUE) has released its monthly Cash Flow report for the month ended 31 October 2026, a document dated 10 November 2026 and authorised by executive director and company secretary Victor Ho. The filing covers the first four months of the financial year and shows a group whose cash reserves have declined over that period while operating activity has remained small. Because the consolidated accounts include the company's 59.86% interest in ASX-listed Investment company Orion Equities Limited (OEQ), the parent entity and the wider group report markedly different positions, and readers need to look at both to follow the picture.

Cash movements during October

At consolidated level, cash and cash equivalents fell by $60,000 during October, from $2.86 million at the start of the month to $2.80 million at 31 October. Net Operating Cash Flow was nil for the month. Receipts of about $32,000, mainly recoveries of staff costs under shared office arrangements, and $11,000 of interest income were offset by $39,000 of staff costs and $4,000 of administration costs. Investing activities used $60,000, comprising $179,000 of investment purchases partly offset by $119,000 of disposal proceeds.

Across the four months to the end of October, consolidated cash declined by $1.01 million. Investing activity accounts for most of that movement, with $996,000 spent on investments and $119,000 recovered through disposals, a net outflow of $877,000. Operating Activities used $125,000 over the period, as staff costs of $205,000 and administration costs of $93,000 outweighed receipts and interest income.

Parent company and consolidated positions

The Parent Company reported a cash balance of $15,000 at month end, up from $6,000 at the start of October. It recorded positive operating cash flow of $9,000 in the month, driven by $33,000 of shared office recoveries, partly offset by staff, administration and interest payments. Year to date, parent company operating cash flow was negative $27,000.

The company's own funding estimate totals $70,000, made up of the $15,000 cash balance and $55,000 of unused financing. Because parent company operating cash flow was positive in October, the report marks its estimate of months of funding as not applicable. The consolidated cash balance of $2.80 million is held at group level. Payments to related parties totalled $16,000 in the month and are included in operating costs.

Loan facility and listed holdings

Queste and Orion Equities have entered into a loan agreement under which Orion Equities may advance up to $450,000 to Queste. The facility is unsecured, accrues interest at 10% a year and matures on 31 December 2027. The report indicates that about $395,000 had been drawn at month end, leaving $55,000 undrawn, and it notes no additional facilities entered into after month end.

Queste's listed holdings were valued at $713,606 at 31 October 2026. The largest position is 9,367,653 Orion Equities shares, a 59.9% interest valued at $702,574 on a last bid price of 7.5 cents. Queste also holds 1,225,752 shares in Bentley Capital Limited (BEL), a 1.6% interest worth $11,032 at 0.9 cents. The company describes these investments as Liquid assets that supplement its cash reserves. Their value depends on the share prices of two listed companies, so a fall in the OEQ price would reduce the figure without any cash movement.

Risks and points to monitor

The main points of uncertainty are the decline in consolidated cash, the small parent company cash balance, and reliance on a loan from a controlled entity. Parent company cash of $15,000 is modest against group staff and administration costs, which totalled more than $200,000 over four months. Net investment outflows of $877,000 year to date were the largest single Factor in the fall in cash. Market prices for OEQ and BEL shares are outside the company's control, and the value of its holdings can move with them.

The report records no receipts from customers, which reflects a structure centred on holding investments and a shared office arrangement rather than an Operating Revenue stream. Readers following the company will be looking at how the drawdown on the Orion Equities facility develops and whether investment balances change in coming monthly filings.

Final Word

Queste's October report shows a group with a limited operating footprint, a cash balance held largely within its controlled entity, and a parent company whose Liquidity depends on a small cash position and a related-party loan facility. The coming monthly filings will show whether the consolidated cash balance continues to decline and how the drawdown on the Orion Equities facility and the value of listed holdings change over time.