Why fund managers see Comms Group as an under-the-radar turnaround
Comms Group has steadily rebuilt investor confidence through debt refinancing, contract wins and a managed IT unit sale, all while trading at a single-digit earnings multiple.
30 Jun 2026 · 6 min read
In short
Comms Group refinanced its debt with a major Australian bank, providing a lower cost of funds and additional capacity to fund future acquisitions.
The company signed $7.7 million in new annualised recurring revenue in the nine months to 31 March 2026, against expected FY26 revenue of $75 million.
Comms Group announced the sale of its managed IT services unit at an attractive price, expected to reduce debt and fund a significant capital return and franked dividend.
Communications and managed IT provider Comms Group has rebuilt investor confidence through a steady sequence of announcements since late 2025, with Naos Asset Management's December 2025 Quarterly Report detailing Q1 FY26 revenue of $19.4 million and EBITDA of $2.2 million, alongside reaffirmed annualised run-rate guidance of approximately $75 million in revenue and $9-10 million in EBITDA.
A small-cap turnaround with a debt-free ambition
Naos Asset Management's report detailed a key balance sheet milestone: an agreement with a major Australian bank to refinance the group's existing debt facilities, previously held with a private credit fund, providing a potentially material cost-of-funds benefit alongside increased flexibility and capacity for further complementary acquisitions. Monash Investors' May 2026 Monthly Report detailed initiating a position at 6.8 cents per share, noting the stock traded at a single-digit earnings multiple with balance sheet capacity to fund both organic growth and further strategic acquisitions, describing the business as capital-light, cash generative and benefiting from a positive operating tailwind in cybersecurity underpinning corporate uptake of its services.
With a market capitalisation of just $40 million, CCG remains under the radar of most investors. If the Board and management can continue to execute, we can see a day when the business is debt-free and producing free cash flow in excess of $7 million annually.
— Naos Asset Management, Quarterly Report, December 2025
DMX Asset Management's May 2026 Monthly Report detailed management's medium-term strategy: targeting over 10% organic revenue growth through its global and secured managed IT divisions, with longer-term EBITDA margins above 15% as corporate overhead costs scale, implying a medium-term target of $100 million revenue and $15 million EBITDA against a current enterprise value of only around $45 million, a material re-rating opportunity if delivered. The report also noted new annualised recurring revenue of $7.7 million signed in the nine months to 31 March 2026, against expected FY26 revenue of $75 million, evidence of continued organic momentum.
What managers are watching next
DMX Asset Management's June 2026 report detailed a further capital management development: the announced sale of the company's managed IT services unit at what it considers an attractive price, allowing debt reduction and likely resulting in a significant capital return and franked dividend, sending shares up 15%. With synergies from the earlier TasmaNet acquisition still to be fully realised, managers are watching whether further asset sales follow or whether management instead pursues accelerated growth initiatives with the remaining business units.
Questions
How has Comms Group improved its balance sheet?
Comms Group refinanced its existing debt facilities, previously held with a private credit fund, through an agreement with a major Australian bank, providing a lower cost of funds and increased capacity to fund future complementary acquisitions.
What is Comms Group's medium-term growth target?
DMX Asset Management notes Comms Group is targeting over 10% organic revenue growth and longer-term EBITDA margins above 15%, implying a medium-term target of $100 million revenue and $15 million EBITDA against a current enterprise value of only around $45 million.
Why did Comms Group sell its managed IT services unit?
According to DMX Asset Management, Comms Group sold its managed IT services unit at an attractive price to reduce debt, with the deal expected to result in a significant capital return and franked dividend to shareholders.
5 managers, 11 comments, with each manager's latest recorded position.
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