Comms Group's Profitable Divestment Funds a Capital Return

A debt refinancing rebuilt investor confidence, and selling its onPlatinum division for well above cost is now funding debt reduction and a dividend.

4 Aug 2026 · 4 min read

Comms Group turned around from a debt-laden telco with credibility problems into a cash-generative business with a refinanced balance sheet, before a highly profitable divestment of its onPlatinum managed IT services division for $30 million, well above the $12 million it paid in 2022, funded debt reduction and set up a capital return.

Rebuilding investor confidence through a turnaround

DMX Asset Management said the stock rose 16 percent as the company updated investors highlighting its growth trajectory and relatively low valuation compared with sector peers, reiterating expectations for a meaningful earnings uplift as integration of its recently acquired TasmaNet business continued on track. Naos Asset Management said Comms Group continued rebuilding investor confidence through a series of announcements in late 2025 signalling progress on its turnaround strategy, including a first-quarter FY26 trading update showing revenue of $19.4 million and EBITDA of $2.2 million, with management reaffirming annualised run-rate guidance of around $75 million in revenue.

A debt refinancing strengthens the balance sheet

Tamim Funds Management said Comms Group delivered a material balance sheet update in December 2025, refinancing its debt through a new Westpac facility on improved commercial terms, enhancing liquidity, extending funding headroom and including additional undrawn capacity to support future acquisitions, alongside a new equipment leasing facility. Naos Asset Management described Comms Group as a junior telco and IT provider with a strong customer offering, recurring revenues and an improving margin profile, noting the debt refinancing to a major Australian bank significantly improved its interest rate and capacity to fund future acquisitions.

The new structure enhances liquidity, extends funding headroom, and includes additional undrawn capacity to support future acquisitions, alongside a new equipment leasing facility.

— Tamim Funds Management, Monthly Report, December 2025

A new fund manager buys in as the strategy takes shape

Monash Investors said it took advantage of strong liquidity early in the month to initiate a position in Comms Group, a company that had been held by the DMX funds for some time, describing it as an IT and communications group operating across three distinct verticals, Communications and Collaboration, Managed IT Solutions, and Global and Wholesale Unified Communications, running a highly cash-generative and capital-light business model. DMX Asset Management said Comms Group presented a medium-term strategy to become a leading cloud communications, collaboration and secure managed IT solutions provider across the Asia Pacific region, targeting more than 10 percent organic revenue growth through its global and secured managed IT divisions, with longer-term EBITDA margins above 15 percent as the business scales its corporate overhead costs.

A highly profitable divestment funds a capital return

DMX Asset Management said the stock rose 15 percent on the announced sale of its managed IT services unit, struck at an attractive price that allows the company to reduce debt and will likely result in a significant capital return and franked dividend, with Comms Group still attractively valued and synergies from the earlier TasmaNet acquisition yet to be fully realised. Tamim Funds Management confirmed Comms Group agreed to sell its onPlatinum IT managed services division for $30.0 million, well above the $12 million paid for it in 2022, with proceeds earmarked to reduce debt and fund a capital return, expecting a dividend of 1.5 to 2 cents a share, while still believing the remaining two divisions could be sold, or the company itself acquired, within 12 months.

Comms Group agreed to sell its onPlatinum IT managed services division for $30.0m, well above the $12m paid for it in 2022, with proceeds to reduce debt and fund a capital return. We expect a 1.5-2c dividend and still believe the remaining two divisions could be sold, or the company acquired, within 12 months.

— Tamim Funds Management, Monthly Report, June 2026

August confirms quality and undervaluation

Naos Asset Management described Comms Group as a quality, undervalued IT and global communications company with material upside to current margins and a long-term revenue growth runway for its global communications division, providing FY26 guidance of $8.0 million to $8.5 million in underlying EBITDA as the onPlatinum divestment moved toward settlement.

What fund managers say they are watching next is whether the remaining Communications & Collaboration and Global & Wholesale Unified Communications divisions get sold or the whole company acquired within 12 months as Tamim speculates, delivery of the targeted 1.5 to 2 cent dividend, continued TasmaNet synergy realisation, and progress toward the more than 10 percent organic revenue growth and above 15 percent EBITDA margin longer-term targets.