Fund Manager Summary
The fund managers believe that the outlook for XRF Scientific Limited remains positive, particularly given its steady execution and a 12% increase in profit despite flat revenue. In their opinion, this performance indicates resilience and potential for future growth. However, they note that the market tends to initially reward such results, followed by sharp profit-taking as conditions shift. This trend suggests that while there may be short-term volatility, the underlying fundamentals of XRF could present investment opportunities for those willing to navigate the fluctuations.
Source: Trading View
Commentary From The Managers
Subscribe To Unlock
Date
Price
Summary
Unlock Recent Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Mereweather Capital
31 Oct 2025
$2.09
Summary
- Mereweather Capital continues to hold its position in XRF Scientific Limited (XRF) due to a 16% revenue growth compared to last year.
- The company reported a 7% increase in profit before tax, indicating a stable performance amidst rising input costs.
- This revenue growth is attributed to XRF effectively passing on higher input costs, mainly driven by increasing platinum prices.
- The 7% profit before tax growth is viewed as a reflection of the underlying business health.
- Although there was a slight decline in high margin Consumables sales during the quarter, management indicated a positive start in October.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Updates are made available to members within 12 hours in accordance with the ThesisTracker Pro Service Level Agreement.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Mereweather Capital
31 Oct 2025
$2.09
- Mereweather Capital continues to hold its position in XRF Scientific Limited (XRF) due to a 16% revenue growth compared to last year.
- The company reported a 7% increase in profit before tax, indicating a stable performance amidst rising input costs.
- This revenue growth is attributed to XRF effectively passing on higher input costs, mainly driven by increasing platinum prices.
- The 7% profit before tax growth is viewed as a reflection of the underlying business health.
- Although there was a slight decline in high margin Consumables sales during the quarter, management indicated a positive start in October.
Summary
Mereweather Capital
30 Sept 2025
$2.32
- Mereweather Capital has benefited from earnings multiple expansion in its portfolio.
- Profits were taken in XRF Scientific (XRF) during the month.
- Investments were made when these companies had no sell-side coverage or institutional ownership.
- Companies were initially trading on low double-digit earnings multiples.
- Growth execution has led to higher valuations as interest increases.
- Despite holding positive views on future outlooks, momentum-driven share prices prompted a prudent reduction in holdings.
- Mereweather Capital is rotating into new investment ideas that resemble initial investment opportunities.
Summary
Elston Asset Management
30 June 2025
$1.84
- Elston initiated a position in XRF Scientific after monitoring the business for some time.
- The investment was previously outside the fund's universe due to a market cap below $150 million.
- Interest increased as XRF moved above the minimum investment threshold and showed solid strategic execution.
- The fund manager found a buying opportunity after market corrections related to Trump's policies.
- XRF offers market-leading, niche products for elemental sample preparation across various industries.
- Key customer segments include miners, construction materials producers, and commercial analytical laboratories.
- Products are categorized into Consumables, Capital Equipment, and Precious Metals.
- Fusion Flux, a consumable product, dominates its category with a 60% market share, providing predictable revenue streams.
- Capital Equipment sales are lumpier but present significant growth opportunities through internal development and acquisitions.
- The Precious Metals segment offers high-margin recycling services, increasing customer lifetime value.
- XRF has a history of dominating niche markets and seeks to innovate within the industry.
- Management leverages strong distribution and manufacturing capabilities to enhance market position.
- The company benefits from economies of scope, creating barriers for new entrants.
- Elston believes organic growth prospects are attractive due to rising global sample testing volumes.
- Gross margins are expected to improve, particularly in the Precious Metals segment as recycling increases.
- The management team maintains a disciplined approach to debt and cash flow management.
- Risks include failure to innovate, competitive landscape shifts, and potential economic downturns.
- XRF provides unique, high-quality exposure with a diversified global revenue base.
- Over a 5-year horizon, XRF is expected to deliver returns exceeding the fund's hurdle rate.
Summary
Mereweather Capital
30 Apr 2025
$1.53
- Mereweather Capital updates its investment thesis on XRF Scientific (XRF) following a weaker third quarter performance.
- The quarterly revenue was $13.9m, down 9% from $15.2m in the same quarter last year.
- Revenue decline attributed to delays in invoicing within the Capital Equipment segment and lower sales in the Precious Metals segment.
- Despite revenue challenges, profit before tax increased by 5% due to strong performance in the Consumables segment.
- Management expressed a positive outlook for the fourth quarter, citing strong Consumable sales and expected realization of delayed invoicing.
- XRF is facing a tough comparison with a strong fourth quarter result from the previous year, raising concerns of market reaction to weak headline numbers.
- Mereweather Capital acknowledges the exceptional execution by XRF management over recent years.
- The firm maintains its material position in XRF, emphasizing a long-term investment perspective rather than short-term market fluctuations.
Summary
Mereweather Capital
28 Feb 2025
$1.97
- Mereweather Capital notes that XRF Scientific (XRF) has maintained steady execution.
- Despite revenue remaining flat, profit has increased by 12%.
- The market reacted positively to the results initially, highlighting a strong reward for the outcome.
- However, there has been subsequent profit taking as market conditions shifted.
- Mereweather Capital continues to hold shares due to the company's resilience and potential for growth.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"It seems that while XRF Scientific is navigating a flat revenue landscape with a surprising profit uptick, the market's initial enthusiasm may quickly shift to caution, reflecting a broader trend of profit-taking that investors should watch closely."
Last Updated: 31 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in XRF Scientific Limited (ASX:XRF)?
Fund managers including Mereweather Capital and Elston Asset Management have invested in XRF Scientific Limited (ASX:XRF).
Why do fund managers invest in XRF Scientific Limited?
Fund managers have invested in XRF Scientific Limited due to its consistent execution and profitability, evidenced by a 12% profit increase despite flat revenue. This indicates effective management and potential for future growth, making it an attractive option in a volatile market.
What happened to XRF Scientific Limited (ASX:XRF)?
Fund managers have invested in XRF Scientific Limited due to its strong revenue growth, driven by effective management in passing on higher input costs, particularly from rising platinum prices. The company reported a 16% revenue increase and a 7% rise in profit before tax, indicating solid underlying business performance. Despite some fluctuations in high-margin consumables sales, the positive outlook from management suggests continued potential for growth, making it an attractive investment choice.