Key Highlights

  • Operating cash inflow was A$735,000 for the September quarter, a fourth consecutive quarter of positive operating cash flow.
  • Revenue fell 11.4% to A$5.12 million, mainly because of store closures that reduced sales by an estimated A$881,000.
  • Total financing facilities were A$13.86 million, with A$13.51 million drawn, and net liabilities of about A$18.5 million at FY26.
  • The auditor included a material uncertainty paragraph on Going Concern in the FY26 accounts.

Oliver's Real Food (ASX:OLI) runs a chain of healthy quick-service restaurants, largely on highway sites, and positions itself around nutrition transparency and technology such as an AI-assisted drive-thru. Its September quarter Appendix 4C, released on 20 October 2026, shows a fourth consecutive quarter of positive operating cash flow, at A$735,000.

That operating progress sits against a weak balance sheet. The FY2026 accounts lodged on 31 August 2026 report net liabilities of about A$18.5 million, and the auditor included a material uncertainty paragraph on going concern. The company says it retains the support of its lenders, who provide most of its debt.

Trading in the September quarter

According to the quarterly report, Revenue was A$5.12 million, down 11.4% on the September 2025 quarter. The company attributes the decline mainly to store closures, which it estimates reduced sales by A$881,000, partly offset by same-store sales growth of 4.6%. Expenses fell by A$394,000 from a year earlier.

On the company's unaudited figures, EBIT was A$204,000 and EBITDA A$648,000. After A$232,000 of interest, the operating result was a loss of A$28,000. Management calls the result a continuation of its profit trend and says it is now considering new opportunities, having previously curtailed expansion. These are company-reported, non-statutory measures.

The report also notes that chief executive Natalie Sharpe received an innovation award at a US restaurant technology event, and that the company won a customer experience award for its nutrition data system. Industry recognition does not, of itself, translate into earnings.

Cash and borrowings

The Appendix 4C shows receipts from customers of A$5.6 million and net operating cash inflow of A$735,000. The company spent A$218,000 on equipment and repaid A$588,000 of Lease and Loan obligations. Cash at 30 September 2026 was A$316,000, up from A$273,000.

Total financing facilities were A$13.86 million, of which A$13.51 million was drawn, leaving A$350,000 unused. Most of the facilities are with Gelba Pty Limited and Michael and Suzanne Gregg at 7.30% a year, with maturities in 2028 and 2032 and scheduled quarterly repayments starting in the December 2027 quarter. A smaller secured loan of about A$301,000 is repayable only once the company records positive net profit after tax over two prior calendar quarters.

The activity report shows A$232,000 of interest, while the 4C records only A$4,000 of interest and finance costs paid in cash, suggesting some interest was accrued or classified elsewhere.

FY2026 context

For the year to 30 June 2026, revenue fell 8.0% to about A$22.8 million while the company's EBITDAI measure rose to about A$2.9 million, which it links to closing unprofitable stores including two Officer service centre sites and Pheasants Nest North. A further closure, Pheasant Nest South, took effect in July 2026. Net tangible assets were negative 2.65 cents per share.

Risks and upcoming events

The main risks are the going concern uncertainty, reliance on continued lender support, a small cash balance, and rising labour costs and higher fuel prices, which the company says have weighed on trading. The wider Australian quick-service market is competitive and sensitive to discretionary spending. Further store closures would lower costs but also reduce revenue.

The Annual General Meeting is scheduled for 10am AEDT on Wednesday 25 November 2026 at Grant Thornton's Sydney offices. Resolutions include the remuneration report and the re-election of director Steven Metter. No Capital raising has been announced.