Fund Manager Summary
The fund managers believe that Motio Ltd (MXO) presents a compelling investment opportunity due to its strong cash generation and strategic positioning in the digital place-based media sector. In their opinion, the company's recent focus on monetisation and operational improvements has led to impressive upgrades in financial guidance for FY25, with projected revenues rising to $8.6m and cash EBITDA to $1.2m. The management's successful balance sheet management, bolstered by a $1.35m spin-off, positions MXO in a net cash situation, reducing the risk of equity dilution. The fund managers note that despite potential headwinds from the upcoming Federal election, the business is likely to outperform expectations in the stronger 2H. With an $8m market capitalisation and a clean balance sheet, MXO is seen as a robust investment within the neglected micro-cap space.
Source: Trading View
Commentary From The Managers
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Mereweather Capital
31 Oct 2025
$0.06
Summary
- Mereweather Capital notes that Motio (MXO) announced a strong first quarter result, generating over $700k EBITDA.
- This represents a growth of over 20% compared to last year.
- Despite some seasonality in the business, MXO is on track to report $2.5-3m EBITDA in FY26.
- This projected EBITDA provides reasonable value against a market capitalisation of $17m.
- Later in the month, MXO completed a small capital raise to pay off remaining debt.
- This capital raise also provides extra working capital to accelerate the roll-out of new digital screens.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Mereweather Capital
31 Oct 2025
$0.06
- Mereweather Capital notes that Motio (MXO) announced a strong first quarter result, generating over $700k EBITDA.
- This represents a growth of over 20% compared to last year.
- Despite some seasonality in the business, MXO is on track to report $2.5-3m EBITDA in FY26.
- This projected EBITDA provides reasonable value against a market capitalisation of $17m.
- Later in the month, MXO completed a small capital raise to pay off remaining debt.
- This capital raise also provides extra working capital to accelerate the roll-out of new digital screens.
Summary
Mereweather Capital
30 Sept 2025
$0.05
- Mereweather Capital notes that September was a quiet month for news across the Fund.
- Only Motio (MXO) provided a trading update during this period.
- At their AGM, Motio reported first quarter revenue was slightly higher after adjustments.
- This adjustment was due to the decision to exit low margin third party revenue.
- Despite the revenue adjustments, stronger margins were observed.
- Management has forecasted a cash profit of $600k for the quarter.
- Mereweather Capital continues to hold their position in Motio based on these developments.
Summary
Mereweather Capital
30 June 2025
$0.04
- Mereweather Capital continues to hold their position in Motio Ltd (MXO) based on updated performance metrics.
- Recent guidance from management indicates revenue will be approximately $600k stronger than anticipated, totaling $9.5m.
- EBITDA is also projected to be $550k stronger, reaching $1.9m.
- Management attributes this growth to the robust performance of the outdoor advertising sector, which is experiencing a 20% growth year-on-year.
- The company exhibits impressive operating leverage, with high gross margins and a relatively fixed operating cost base.
- This structure allows for nearly all incremental revenue growth to contribute directly to profitability.
- Mereweather Capital initially acquired their position in MXO at approximately 6x operating earnings.
- Despite a 90% increase in share price since then, the earnings multiple has only risen to about 7x due to exceptional earnings growth.
Summary
Mereweather Capital
31 May 2025
$0.04
- Mereweather Capital continues to hold a position in Motio Ltd (MXO) due to recent positive updates.
- Motio upgraded their full year revenue and profit guidance following strong trading in the post-Easter period.
- There was minimal impact from potential uncertainty surrounding the Federal election on advertising campaigns.
- The new revenue guidance of $8.5-8.9m and cash EBITDA of over $1.35m aligns with previous expectations.
- Management has historically provided conservative guidance, suggesting a possibility of results exceeding current expectations.
Summary
Mereweather Capital
31 Mar 2025
$0.03
- Mereweather Capital has initiated a position in Motio (MXO) due to short-term market volatility presenting unique opportunities.
- MXO operates as a digital place-based media business with over 1600 digital screens across various sectors such as medical centres and sports venues.
- The majority of MXO's screen network was established through four acquisitions since 2019, totaling approximately $6m.
- Post-acquisition, efforts were needed to refresh assets and engage customers, with a focus on enhancing advertisement utilisation.
- Management indicated that the bulk of foundational work is complete, shifting focus to monetising their network in FY25.
- MXO has consistently upgraded its FY25 financial guidance, from $7.7m revenue and $800k cash EBITDA to $8.6m revenue and $1.2m cash EBITDA.
- Management improved the balance sheet through divesting a non-core software asset, generating $1.35m cash and $1.4m free cashflow.
- Mereweather Capital views MXO’s cash generation as substantially stronger than reported profits, due to non-cash expenses affecting financial statements.
- MXO currently has an $8m market capitalisation and approximately $1.5m in net cash.
- Despite potential 2H uncertainty due to the Federal election, the seasonality trend suggests stronger performance in 2H for MXO.
- This investment aligns with Mereweather Capital’s strategy of targeting neglected micro and nano cap stocks.
- MXO management is experienced, with CEO Adam Cadwallader having nearly 25 years in the industry and ownership aligning with minority shareholders.
- The business model is capital light and generates high cash flow, operating in areas of structural growth despite traditional media weaknesses.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"In a landscape where micro caps are overlooked, Motio Ltd emerges as a phoenix, showcasing robust cash generation and a seasoned management team. As the advertising sector grapples with volatility, MXO seems poised to defy expectations and capitalize on its ideal network size."
Last Updated: 31 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in Motio Ltd (ASX:MXO)?
Fund managers including Mereweather Capital have invested in Motio Ltd (ASX:MXO).
Why do fund managers invest in Motio Ltd?
Fund managers are investing in Motio Ltd (MXO) due to its strong cash generation capabilities and strategic positioning in the growing digital place-based media sector. With over 1600 digital screens across diverse venues, MXO has effectively built a substantial media footprint through targeted acquisitions. The company has demonstrated a solid financial trajectory, consistently upgrading its revenue and EBITDA guidance for FY25, while maintaining a clean balance sheet with net cash. Experienced management, aligned with shareholder interests, enhances confidence in MXO's growth potential, particularly as it capitalizes on opportunities in a neglected micro-cap market.
What happened to Motio Ltd (ASX:MXO)?
Fund managers are investing in Motio Ltd due to its recent financial performance and strategic initiatives. In September 2025, the company reported a slight revenue increase and forecasted a cash profit of $600k, indicating improved margins after exiting low-margin revenue streams. By October, Motio announced over 20% growth in EBITDA, reaching more than $700k, and projected $2.5-3m EBITDA for FY26, suggesting strong value against its $17m market cap. Additionally, a recent capital raise aimed at debt reduction and funding the rollout of new digital screens further strengthens the investment rationale.