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ARC Funds Limited (ASX:ARC)

ALERT: Price-sensitive ASX Announcement for ARC
Current share price for ARC : $0.040 -0.015 (-27.27%)+
Announcement
Release
31 Aug 2026 5:12PM
Price at Release
$0.055
Full Release
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Summary
ARC Funds Limited’s Appendix 4E and FY26 Annual Report for the financial year ended 30 June 2026 report a year of portfolio repositioning, capital raising and significant impairments, with revenue rising 446.4% to $1.10 million, largely driven by platform fee growth, while the consolidated loss after tax attributable to shareholders widened to $3.218 million and net tangible assets per share fell to negative 0.63 cents; the group increased its stake in The Term Deposit Shop to 74.48% and identified it as its core growth platform, but reduced its ownership in Merewether Capital Management from 72% to 36% and deconsolidated it, then impaired the retained investment to nil, while also impairing its investment in Ausbiz Capital and related financial exposures within the Ausbiz Group due to insufficient evidence supporting recoverability; ARC ended FY26 with $523,000 cash, raised about $1.99 million in equity during the year, disclosed a material uncertainty related to going concern despite directors preparing forecasts supporting continuation, and noted a post-balance-date capital placement facility of up to $5 million, while the financial statements were audited with an unmodified opinion and the annual report outlined a strategic focus on stronger governance, disciplined capital allocation, improved operating performance and long-term shareholder value creation.
Key Points
  • Appendix 4E covers the year ended 30 June 2026 for ARC Funds Limited.
  • Revenue from ordinary activities increased 446.4% to $1,104,791.
  • Loss from ordinary activities after tax attributable to ARC shareholders was $3,218,018.
  • No dividends were paid, recommended or declared for FY26.
  • Net tangible assets per ordinary security were negative 0.63 cents at 30 June 2026.
  • The financial statements were audited and received an unmodified audit opinion.
  • The FY26 Annual Report was attached to the Appendix 4E.
  • ARC increased its ownership in The Term Deposit Shop Pty Ltd from 63.49% to 74.48%.
  • The Term Deposit Shop was described as ARC’s core investment and platform growth opportunity.
  • Platform fee revenue increased to about $590,000 from about $61,000 in FY25.
  • Funds Under Administration at The Term Deposit Shop reached about $597 million during the March 2026 quarter.
  • ARC reduced its ownership in Merewether Capital Management Pty Ltd from 72% to 36% in June 2026.
  • Control of Merewether Capital Management was lost on 26 June 2026 and the retained interest became an associate.
  • ARC received $50,000 cash consideration on the partial disposal of Merewether Capital Management.
  • The retained Merewether investment was subsequently impaired to nil.
  • ARC held a 26.35% interest in Ausbiz Capital Pty Ltd at year end.
  • ARC recognised an impairment of about $655,255 on its Ausbiz Capital investment, reducing it to nil.
  • ARC also impaired loans, accrued interest and convertible note exposures to entities within the Ausbiz Group.
  • Management stated the impairments did not extinguish ARC’s contractual recovery rights against Ausbiz Group entities.
  • ARC raised about $1.99 million in equity during FY26, including about $1.79 million in new capital and $0.20 million through debt conversion.
  • Post year end, ARC entered into a Capital Placement Facility with Securities Vault Pty Ltd for up to $5 million over 12 months.
  • At 30 June 2026, ARC held cash and cash equivalents of $522,987.
  • The group reported total assets of $1.467 million and total equity of $331,709 at 30 June 2026.
  • Issued capital increased to $25.155 million by 30 June 2026.
  • The group recorded a consolidated loss after tax of $3.265 million including non-controlling interests.
  • There was a material uncertainty related to going concern due to losses, operating cash outflows and a current asset deficiency.
  • The board said its FY27 priorities were execution, financial discipline, improving performance, growing The Term Deposit Shop and rationalising the investment portfolio.
  • Michael Walker signed the Appendix 4E and annual report as Chairman on 31 August 2026.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.