Fund Manager Summary on Comms Group Ltd (ASX:CCG)
In February 2026, Naos Asset Management commented that Comms Group Ltd (ASX:CCG) is a junior telco/IT provider with recurring revenues and improving margins, having completed a debt refinancing to a major Australian bank that materially improves funding capacity for acquisitions, reported healthy Q1 FY26 customer wins and synergy realisation from the TasmaNet acquisition, and is targeting a move to a net cash balance sheet through FY26. Overall, fund manager commentary converges on a view that Comms Group’s strategic acquisition of TasmaNet is transformational—adding over 600 customers, about 40% revenue exposure to long‑standing Tasmanian Government contracts, fixed wireless and fibre assets, cloud and cyber capabilities—and is expected to lift annualised revenue to about $75 million and EBITDA to $9–10 million while delivering roughly $2 million of annualised synergies from network rationalisation; managers note the company has rebuilt investor confidence through Q1 FY26 trading of $19.4 million revenue and $2.2 million EBITDA, a successful debt refinance (now with a major bank/Westpac) that reduces funding cost and provides undrawn capacity, and capital raises including a $7 million placement and entitlement offer plus prior debt facilities, which together reduce near‑term funding risk and support further M&A optionality. Actionable insights emphasised by fund managers include structural tailwinds from industry consolidation and demand for higher‑service telco/managed IT providers, operational focus points on integration execution and network rationalisation to realise the $2 million synergy target, ongoing capital management to reduce leverage while preserving distributions, and potential rerating upside if management meets guidance and converts to net cash and free cash flow (with one manager referencing potential free cash flow in excess of $7 million and a fair value view of at least $0.10 per share), while key risks remain execution and integration risk, dependence on government contracts and the need to convert refinancing headroom into profitable growth without dilutive equity issuance.
Commentary From The Managers
There are 6 insights from 4 fund managers regarding their investment in Comms Group Ltd (ASX:CCG) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Naos Asset Management
3 Feb 2026
$0.07
Summary
- Naos Asset Management believes Comms Group is an attractive junior telco/IT investment and continues to hold because it benefits from recurring revenues, a strengthening margin profile and future capital management optionality.
- Comms Group operates as a junior telco/IT provider with a strong customer offering across its products and services.
- The revenue mix is weighted to recurring revenues, supporting cash flow predictability and an improving margin profile as integration synergies are realised.
- Completed a debt refinancing to a major Australian bank, delivering a significantly lower interest rate and greater capacity to fund future acquisitions.
- Q1 FY26 trading update highlighted healthy new customer wins and early synergy realisation from the recent TasmaNet acquisition.
- Key near-term catalysts: management to provide FY26 guidance as the year progresses and a targeted move to a net cash balance sheet through FY26.
Naos Asset Management
31 Dec 2025
$0.07
Summary
- Naos Asset Management believes Comms Group (CCG) is executing a credible turnaround and continues to hold because recent trading, refinancing and AGM disclosures show improving profitability, tangible synergy potential and a pathway to meaningful free cash flow.
- Q1 FY26 trading: reported $19.4m revenue and $2.2m EBITDA; management reiterated an annualised run‑rate target of ~$75m revenue and $9–10m EBITDA.
- All divisions positive in Q1 and the recently acquired TasmaNet is performing in line with expectations, supporting integration progress.
- Synergy opportunity: ~$2m of anticipated annualised cost synergies from network rationalisation, largely to be realised by Q4 FY26 and mainly flowing to FY27 earnings.
- Debt refinance: agreement with a Big‑4 bank to replace prior private credit facilities, providing a likely material cost‑of‑funds benefit, greater flexibility and headroom for complementary acquisitions.
- New contracted revenue: ~$5m of new annualised recurring revenue contracted year‑to‑date across corporate and government clients; management reports a building sales pipeline.
- Capital priorities: Board emphasises debt reduction while maintaining distributions and funding organic growth—signalling a preference to avoid equity issuance and focus on shareholder returns.
- Valuation and upside: market capitalisation ~$40m, currently under the radar; if management continues to execute, pathway exists to be debt‑free and generate >$7m free cash flow annually.
- Sector backdrop: consolidation in telecom and managed IT over the past five years creates customer displacement opportunities for service‑oriented operators like CCG to win market share.
Tamim Funds Management
31 Dec 2025
$0.07
Summary
- Tamim Funds Management believes the December 2025 refinancing materially strengthens Comms Group's balance sheet and continues to hold because it enhances liquidity, extends funding headroom, reduces near-term funding risk and provides capacity to pursue acquisitions and growth.
- Refinancing partner: Debt refinanced via a new Westpac facility on improved commercial terms.
- Improved liquidity and headroom: The new structure enhances liquidity and extends funding headroom, increasing financial runway during integration.
- Acquisition capacity: Facility includes additional undrawn capacity to support future acquisitions.
- Equipment financing: Introduction of a new equipment leasing facility to better fund capex and operational needs.
- Strategic flexibility: Refinancing strengthens financial flexibility at a key growth and integration stage, positioning the group to pursue strategic opportunities with reduced short-term funding risk.
DMX Asset Management
31 Oct 2025
$0.07
Summary
- Communications and managed IT service provider Comms Group has shown a significant rise of 16%.
- DMX Asset Management notes the company's recent update to investors, emphasizing its growth trajectory.
- Comms Group is currently valued relatively low compared to others in the sector.
- DMX Asset Management continues to hold because of expectations for a meaningful earnings uplift.
- The integration of recently acquired TasmaNet is reported to be on track.
Cyan Investment Management
31 May 2025
$0.05
Summary
- Cyan Investment Management has made recent adjustments to their portfolio by adding positions in Comms Group (CCG).
- The decision follows CCG's acquisition of competitor Tasmanet, which was bought out of administration.
- This strategic move is part of Cyan Investment Management's ongoing evaluation of growth opportunities within the communications sector.
- Cyan Investment Management continues to hold a positive outlook on CCG as they capitalize on market dynamics.
Tamim Funds Management
31 May 2025
$0.05
Summary
- Tamim Funds Management continues to hold its position in Comms Group Ltd (ASX: CCG) following the strategic acquisition of TasmaNet for $10 million.
- This acquisition significantly enhances Comms Group's presence in the government and corporate sectors, adding over 600 customers.
- Approximately 40% of the new revenue is linked to long-standing contracts with the Tasmanian Government.
- Key network assets acquired include fixed wireless and fibre networks, cloud infrastructure, and cybersecurity capabilities.
- The acquisition is expected to increase annualised revenue to approximately $75 million and EBITDA to between $9–$10 million.
- To fund this acquisition, Comms Group raised $7 million through an institutional placement and entitlement offer, along with a $10.7 million debt facility.
- This move aligns with Comms Group's strategy to expand its service offerings and geographical reach across Australia.
- Tamim Funds Management views this transaction as transformational with significant future growth potential in larger corporates and additional state government contracts.
- The stock currently trades on 3-3.5x EV/Ebitda or 5x PE.
- We expect the stock to re-rate over the next 6 months as the company executes on guidance.
- Tamim Funds Management believes fair value is at least 10 cents or higher.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Comms Group Ltd (ASX:CCG)?
Fund managers including Cyan Investment Management, Tamim Funds Management, DMX Asset Management and Naos Asset Management have invested in Comms Group Ltd (ASX:CCG).
Why do fund managers invest in Comms Group Ltd?
Fund managers invest in Comms Group Ltd due to its strategic acquisition of TasmaNet, significantly enhancing its portfolio and customer base, particularly in government contracts. This move, expected to boost annual revenue to approximately $75 million, demonstrates strong growth potential. Additionally, Comms Group's low valuation compared to industry peers and its diverse service offerings contribute to an appealing risk/reward profile, making it attractive for long-term investment.
What happened to Comms Group Ltd (ASX:CCG)?
Fund managers, including DMX Asset Management, are investing in Comms Group Ltd due to its strong growth trajectory, competitive valuation compared to peers, and anticipated earnings increase from the successful integration of the TasmaNet acquisition.
What is the short interest in Comms Group Ltd (ASX:CCG)?
According to ASIC filings, there is negligible or no short interest in Comms Group Ltd (ASX:CCG).
What does Comms Group Ltd (ASX:CCG) do?
Comms Group Ltd. engages in the provision of ICT solutions and services to the enterprises and business markets. The company was founded by Grant Ellison in September 2008 and is headquartered in Sydney, Australia.