DMXCP Monthly ReportJune 2026 – DMX
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An investment company managed by
DMX Asset Management Limited ACN 169 381 908 AFSL 459 120 13/111 Elizabeth Street, Sydney, NSW 2000 DMXCP directors Roger Collison, Dean Morel, Steven McCarthy |
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Dear Shareholder,
DMXCP’s NAV decreased 1.2% (after all accrued fees and expenses) for June 2026. The NAV as at 30 June 2026 was $2.7831, compared to $2. 8162, as at 31 May 2026. The All-Ordinaries Accumulation Index increased 0.4%, while smaller companies had a tougher month - the Small Ordinaries declined 2.1% and the Emerging Companies Index fell 4.1%.
June Performance
June saw micro-cap names continue to suffer from poor market sentiment with the Small Ordinaries now having fallen ~10% since the start of the year. During the month this negative sentiment was compounded by tax loss selling and some disappointing market updates. Whilst we had some positive performances, including Bioxyne (ASX:BXN) which was up 16% following increased investor engagement and Comms Group (ASX:CCG) which rose 15% on the back of an asset divestment, these were offset by a number of material declines. Pure Profile (ASX:PPL) finished the month down 18% , Volt Group (ASX:VPR) fell 23%, AFL Legal (ASX:AFL) was down 17% and Read Cloud (ASX:RCL) fell 20%, all on no specific market news.
We also experienced two downgrades during the month. Austco Healthcare (ASX:AHC) fell 18% after reporting a weaker second half of earnings due to semiconductor supply chain disruption and longer freight transit times and hospital construction delays. Management believes these opportunities are being delayed rather than lost with the timing of some installations and pipeline conversion shifted into FY27. Tuition provider Kip McGrath (ASX:KME) declined 10% as increased lesson prices were not able to fully offset lower lesson numbers leading to a small downgrade to its second half results. Cash flow generation remains strong here though, and it was pleasing to see a stabilisation in the number of tuition centres, following several periods of falling centre numbers.
With a challenging macro environment where consumers and businesses are cautious on the back of inflation and geopolitical uncertainty, operating conditions remain difficult for many companies, as noted above in relation to AHC and KME. However, we do continue to see plenty of positive results from within the portfolio.
Enterprise asset management software company Asset Vision (ASX:ASV) announced a number of high-profile contract wins that have increased its ARR by a quite remarkable 45% in FY26 to $6.4m. In its new Social Infrastructure vertical, ASV secured NSW Homes, which will use ASV’s platform to support the planning and management of 150,000 social housing dwellings. ASV also secured a key contract win in Tasmania, where its platform will be implemented by the Tasmanian State Government to support the management of roads and related infrastructure. Leading contractors Ventia and Fulton Hogan have also agreed to use ASV’s platform to support delivery of their newly awarded Victorian Road Maintenance contracts. These all validate ASV’s vision, as impressive co-CEO Lucas Murtagh notes “to be a global SaaS leader in enterprise asset management by making critical infrastructure easier to manage, and results like these show we are well on the way.” ASV remains very much under the radar, and we would expect it to attract more market attention in FY27 as it continues to convert its significant pipeline to maintain its strong growth rate driving its ARR towards $10m, having already doubled its ARR in the last two years.
Out-of-home digital advertising business Motio (ASX:MXO), during the month announced a 24% increase in its FY26 cash EBITDA to $2.4m. May and June were the highest revenue months in MXO's history with this momentum broad-based across the business. This momentum is expected to continue into FY27, with forward bookings for Q127 up 20%. Like ASV, MXO is also very much under the radar and particularly well led by CEO Adam Caldwandar who is a well aligned and respected industry leader that brings strong passion and vision to MXO. As noted last month, with ~$2.4m cash EBITDA for FY26, a ~$16m market cap, $4m cash and a strong double digit revenue growth outlook underpinned by its health roll-out heading into FY27, we think MXO represents an attractively priced set up from here.
Opportunities in the current weaker market
The challenging market conditions currently being faced by smaller names have presented us with what we believe to be some compelling opportunities - two interesting opportunities that we took advantage of during June are discussed below.
Concluding thoughts
We continue to back and execute on our strategy of buying growing companies with low market capitalisations and attractive valuations, which positions us well for long-term material upside as our portfolio companies grow and become more widely known.
During FY26 we saw some pleasing evidence of this upside potential with some significant re-rates across the portfolio, including EDU Holdings (ASX:EDU) returning 230%, Verbrec (ASX:VBC) returning 197% and BXN up 116%. However, we also got some wrong with our position in RPM Automotive (ASX:RPM) down 75% being a particularly disappointing outcome. Whilst we always expect a range of outcomes across our ~50 portfolio holdings, we are utmost aware of our need to minimise our exposure to these significant drawdowns.
As we enter FY27, we are confident in the upside across our diverse and unique portfolio of attractively priced, growing, under-the-radar companies. As was the case this month with BEO, we have been able to take advantage of market opportunities to build substantial positions in a range of interesting, under-owned companies that are difficult for investors (and other funds) to replicate. Owning these unique, mispriced and under-owned companies positions us well to capture some of the material upside on offer, to drive continued long term portfolio growth.
Thank you for your continued support and we look forward to updating you next month.
DMXCP’s NAV decreased 1.2% (after all accrued fees and expenses) for June 2026. The NAV as at 30 June 2026 was $2.7831, compared to $2. 8162, as at 31 May 2026. The All-Ordinaries Accumulation Index increased 0.4%, while smaller companies had a tougher month - the Small Ordinaries declined 2.1% and the Emerging Companies Index fell 4.1%.
June Performance
June saw micro-cap names continue to suffer from poor market sentiment with the Small Ordinaries now having fallen ~10% since the start of the year. During the month this negative sentiment was compounded by tax loss selling and some disappointing market updates. Whilst we had some positive performances, including Bioxyne (ASX:BXN) which was up 16% following increased investor engagement and Comms Group (ASX:CCG) which rose 15% on the back of an asset divestment, these were offset by a number of material declines. Pure Profile (ASX:PPL) finished the month down 18% , Volt Group (ASX:VPR) fell 23%, AFL Legal (ASX:AFL) was down 17% and Read Cloud (ASX:RCL) fell 20%, all on no specific market news.
We also experienced two downgrades during the month. Austco Healthcare (ASX:AHC) fell 18% after reporting a weaker second half of earnings due to semiconductor supply chain disruption and longer freight transit times and hospital construction delays. Management believes these opportunities are being delayed rather than lost with the timing of some installations and pipeline conversion shifted into FY27. Tuition provider Kip McGrath (ASX:KME) declined 10% as increased lesson prices were not able to fully offset lower lesson numbers leading to a small downgrade to its second half results. Cash flow generation remains strong here though, and it was pleasing to see a stabilisation in the number of tuition centres, following several periods of falling centre numbers.
With a challenging macro environment where consumers and businesses are cautious on the back of inflation and geopolitical uncertainty, operating conditions remain difficult for many companies, as noted above in relation to AHC and KME. However, we do continue to see plenty of positive results from within the portfolio.
Enterprise asset management software company Asset Vision (ASX:ASV) announced a number of high-profile contract wins that have increased its ARR by a quite remarkable 45% in FY26 to $6.4m. In its new Social Infrastructure vertical, ASV secured NSW Homes, which will use ASV’s platform to support the planning and management of 150,000 social housing dwellings. ASV also secured a key contract win in Tasmania, where its platform will be implemented by the Tasmanian State Government to support the management of roads and related infrastructure. Leading contractors Ventia and Fulton Hogan have also agreed to use ASV’s platform to support delivery of their newly awarded Victorian Road Maintenance contracts. These all validate ASV’s vision, as impressive co-CEO Lucas Murtagh notes “to be a global SaaS leader in enterprise asset management by making critical infrastructure easier to manage, and results like these show we are well on the way.” ASV remains very much under the radar, and we would expect it to attract more market attention in FY27 as it continues to convert its significant pipeline to maintain its strong growth rate driving its ARR towards $10m, having already doubled its ARR in the last two years.
Out-of-home digital advertising business Motio (ASX:MXO), during the month announced a 24% increase in its FY26 cash EBITDA to $2.4m. May and June were the highest revenue months in MXO's history with this momentum broad-based across the business. This momentum is expected to continue into FY27, with forward bookings for Q127 up 20%. Like ASV, MXO is also very much under the radar and particularly well led by CEO Adam Caldwandar who is a well aligned and respected industry leader that brings strong passion and vision to MXO. As noted last month, with ~$2.4m cash EBITDA for FY26, a ~$16m market cap, $4m cash and a strong double digit revenue growth outlook underpinned by its health roll-out heading into FY27, we think MXO represents an attractively priced set up from here.
Opportunities in the current weaker market
The challenging market conditions currently being faced by smaller names have presented us with what we believe to be some compelling opportunities - two interesting opportunities that we took advantage of during June are discussed below.
- The Environmental Group (ASX:EGL) is an environmental engineering company with a focus on resources and waste sector through its four divisions: EGL Energy (boiler sales, service and maintenance); EGL Clean Air (which controls dust, fume and emissions for industrial clients); EGL Waste Services (which supplies water recycling and sorting technology) and EGL Baltec, which designs and manufactures inlet and exhaust systems for gas turbines. These divisions share staff, workshops and manufacturing facilities and capabilities across the group making EGL a properly integrated business. EGL Energy contributes the majority of the group earnings, and is the largest boiler maintenance business of its kind in Australia, providing 24/7 maintenance and repairs of both proprietary and other OEM boiler equipment. This work is mission critical for the industrial and commercial clients it serves, with ~70% of its revenue recurring from mandated regular inspections of boilers. In May, EGL downgraded its FY26 normalised EBITDA guidance by ~$4m to between $8.5m and $9.0m, causing its share price to more than halve. The downgrade was driven by several factors including an ERP system rollout that disrupted job-level cost allocation and invoicing, alongside higher diesel costs, shipping delays and slower tender awards in the Middle East. Management maintained that underlying revenue growth and margins within Energy were unaffected, and that the issues were one-off in nature. We have watched EGL from afar for sometime, attracted to the growth potential of the various business units but had previously struggled to get comfortable with its valuation. Management believe the issues impacting FY26 have been addressed, and we expect FY27 will see a return to the level of profitability achieved in FY25 (normalised NPAT of $6m on revenue of ~$120m). At our entry price, EGL’s market capitalisation was ~$33m and we think the risk reward here is attractive.
- Beonic (ASX:BEO) has been in the portfolio for several years and has proved to be a real test of our patience. However, with some encouraging recent progress, we materially increased our position here during the month through participating in its recent rights issue. DMXAM has become a substantial shareholder through this capital raise. BEO provides an AI-powered SaaS platform that helps large physical venues understand and respond to how people move through and interact with their spaces. Billy Tucker joined as CEO in 2023, initially focussing on stabilising the business and rationalising its inflated cost base. With that work largely done, the focus now is on growing revenues, where BEO is now having some success having secured its largest ever contract, a $10.6m Moroccan Airports programme. With BEO reporting EBITDA of $2.8m for the nine months to date, we believe there is a credible path to an EBITDA run rate approaching $5m in FY27. While there remains $4.3m in convertible notes outstanding, these are held by directors and existing shareholders, including ourselves, and represents aligned capital. With BEO’s ARR approaching $18m and growing, and FY27 expected to see the business generating free cash, we think this represents an interesting set up for a global SaaS business relative to its $8m market cap ($12m EV).
Concluding thoughts
We continue to back and execute on our strategy of buying growing companies with low market capitalisations and attractive valuations, which positions us well for long-term material upside as our portfolio companies grow and become more widely known.
During FY26 we saw some pleasing evidence of this upside potential with some significant re-rates across the portfolio, including EDU Holdings (ASX:EDU) returning 230%, Verbrec (ASX:VBC) returning 197% and BXN up 116%. However, we also got some wrong with our position in RPM Automotive (ASX:RPM) down 75% being a particularly disappointing outcome. Whilst we always expect a range of outcomes across our ~50 portfolio holdings, we are utmost aware of our need to minimise our exposure to these significant drawdowns.
As we enter FY27, we are confident in the upside across our diverse and unique portfolio of attractively priced, growing, under-the-radar companies. As was the case this month with BEO, we have been able to take advantage of market opportunities to build substantial positions in a range of interesting, under-owned companies that are difficult for investors (and other funds) to replicate. Owning these unique, mispriced and under-owned companies positions us well to capture some of the material upside on offer, to drive continued long term portfolio growth.
Thank you for your continued support and we look forward to updating you next month.
