DGL is not an overly sexy company.
It provides formulation and manufacturing for a range of potentially hazardous and reactive chemicals, warehousing & distribution of these chemicals including transport and warehousing, and the disposal or recycling of chemical products.
It is founder led by CEO Simon Henry (26yrs going strong)
Currently suspended pending an audit due in the coming weeks (late March 2026).
There's been a bunch of announcements, but I've tried to capture the key points here:
The (rather boring) financial highlights;
Sales revenue has remained relatively flat over the previous 3yrs.
EBITDA and NPAT was significantly down for 25fy, however this was due to once-off write downs of goodwill and P&E, purchase of new ERP, and some general restructuring costs.
They have a strong cashflow. Liquidity is in good shape, with assets easily covering current and non-current liabilities.
The CEO has made a few changes to improve financials, including;
> Discontinuing lead battery recycling due to not being financially viable
> expanding a liquid waste treatment facility that will include plastic recycling which shows high customer interest.
> New ERP to cover logistics, HR and Finance systems
> as at 10/03/2026 making the position off COO redundant. (by my calculations that could save circa $450 inclusive of salary, performance bonus and other HR related expenses)
There's also been senior management restructuring changes with a new Auditor- BDO, new CFO - Gagan Singh, and a new Independent NED - Liz Smith.
My Take:
Assuming the above mentioned changes are effective in reducing COGS and improving profit margin (and I have no reason to believe they wont be), with the continued nominal growth in net revenue, then I can see DGL turning back into profit territory in 2026 and beyond.
Bear: $0.58
Base: $1.00
Bull: $2.50
Disc: small holding IRL, not topping up until I see some traction in the right direction (not that I can while suspended anyway).
