Dear Shareholder,

DMXCP’s NAV decreased 0.9% (after all accrued fees and expenses) for January 2026. The NAV as at 31 January 2026 was $2.9896, compared to $3.0182 as at 31 December 2025. During January, the All-Ordinaries Accumulation Index increased  1.8%, the Small Ordinaries rose 2.7%, while the Emerging Companies Index was up 3.0%. This strong market performance in January was driven by enthusiasm and rotation into resources (Small Resources Index +10%) while industrials (Small Industrials down 0.5% for the month) and the technology sector (Technology Index  -8% in January) lagged.

January Developments

Whilst the year started quietly in terms of newsflow, towards the end of the month we saw a  number of quarterly cash flow reports, half year updates and full year guidance releases ahead of the February reporting season. Meaningful contributions during January came from Advanced Braking (ASX:ABV) which was up 23%, after delivering its strongest ever quarter of revenue, while Aeeris (ASX:AER) increased 35% following a quarter of encouraging ARR growth and reporting an underlying profit.

While the January updates across the portfolio were generally well received by the market, a couple did disappoint: Kinatico  (ASX:KYP) fell 33% after a quarterly report which saw incremental ARR growth below expectations. While the market was disappointed with Raiz (ASX:RZI) which fell 18% as its user number growth slowed to 6% as at 31 December.

Elsewhere, during the month, we sold our remaining position (<1%) in Findi (ASX:FND). FND was a highly profitable investment for us, and it was disappointing not to see this through to its planned Indian IPO as we had expected. However, with its stretched balance sheet which required a substantial and highly dilutionary recapitalisation, and weak recent cash flows and earnings, we lost conviction here and no longer considered FND to be compelling relative to other opportunities.

We discuss some of the more notable updates released in January for five of our key portfolio holdings below.

Pureprofile (ASX:PPL) – small upgrade to full year guidance

PPL delivered robust double-digit (14%) revenue growth for the first half of FY26, with PPL’s rest of world (ROW) business overtaking ANZ as its largest geographic revenue contributor for the first time.  In addition, following the launch in June of PPL’s new AI-enabled self-service solution, it was encouraging to see PPL’s  higher margin platform revenues grow 54% to $9.4m. PPL continue to be well positioned to be an AI beneficiary, including the potential for PPL to provide its data to AI companies to feed their LLMs. On the back of this ROW and platform momentum, PPL upgraded its FY26 revenue guidance to $64m–$65m (previously $63m to $64m). PPL’s EBITDA result of $3.8m, while up 15%, was actually stronger than implied, due to a ~$600k negative swing on forex which PPL absorbed in its first half result.

As we look to the second half of FY26, Management have guided to a stronger Q3 compared to last year. The higher proportion of revenue from ROW helps to dilute the impact of the seasonally weaker Australian Q3 (5% margins last year) that PPL has historically experienced. And with H1’s underlying growth masked somewhat by the negative forex movements, we expect to see an acceleration in PPL’s EBITDA  growth in H2, with PPL on track to deliver  ~30% (organic) EBITDA growth for the full year, versus the 14% growth reported at the half.

EDU Holdings (ASX:EDU) – guidance confirmed

In late January EDU announced it expected its  FY25 results to be at the top end of its guidance, implying an ~$15m NPAT result for the 12 months to 31 December 2025 compared to $2.6m NPAT for the previous 12 months. This result was driven by increased commencements (11,494 students enrolled, +109%) and the strong retention across Ikon’s higher education courses.

As we head into 2026, EDU will benefit from the layering  of enrolment growth in Ikon during 2025, and an expected strong Trimester 1, 2026 intake which has also seen two new courses being launched. While 2026 is therefore looking particularly strong for EDU, we are conscious of the regulatory environment and the impact regulatory changes outside of the control of EDU’s management, may have on EDU’s new student recruitment. Highlighting this risk, during the month, changes banning paying commission to agents involved in the onshore transferring of students were enacted. This cohort of students represent a material proportion of new student enrolments for Ikon. While EDU believes that the changes will not materially affect underlying student demand for its courses, the new regulatory settings do add some uncertainty to EDU’s medium-term earnings and we have been gradually reducing our position here.

Kinatico (ASX:KYP) – a pause in growth

While KYP’s second quarter SaaS revenue of $4.9m was up 42%, and its  first half SaaS revenue of $9.7m  increased 49%, these pleasing numbers masked a slowdown in quarter-on-quarter incremental SaaS growth to $100k ($400k annualised). KYP’s first half SaaS exit rate growth decelerated  from 59% at the end of the first quarter to 41%. This slowdown was attributed to KYP transitioning from selling its legacy compliance offering to its new generation organisational compliance management platform which was launched during the quarter. We would expect growth to re-accelerate in the second half as its marketing ramps up and the new product gets traction. However, with KYP’s growth momentum interrupted, and the market increasingly nervous around software stocks, its shares were sold off by 33% during the month.  

We remain confident in the potential here for KYP, with its historical track record of strong SaaS growth suggesting there should be plenty of demand for its new product. With its strong balance sheet, emerging operating leverage and market opportunity (both domestically and internationally), we continue to believe KYP represents one of the better value/growth propositions of ASX listed SaaS exposures.

Aeeris (ASX:AER) – quarterly profit and encouraging new wins

AER is a meteorological data company that helps its customers make informed climate-related business decisions, receive weather alerts, and understand potential climate risks. Last month we noted it was one of our top picks for 2026. In January AER announced some pleasing progress: its  ARR grew 17% to $4m, and was up 13% quarter on quarter, highlighting the momentum within the business. AER reported a small unaudited profit for the quarter.

Growth was driven by its customers’ continued uptake across its forecasting, hail, cyclone, and flood intelligence modules. Encouragingly, AER also announced a number of business development successes that we think should support its further growth into 2026:

• Nearmap (previously listed on the ASX) was secured as a customer, with AER’s storm and wind mapping  intelligence  now integrated into Nearmap’s Impact Response System. AER believes this represents a significant validation of its geospatial and forecasting capabilities, and of its role as a high-value data infrastructure partner to enterprise platforms.
• Further expansion into the solar industry with two of the largest solar tracker providers.
• UGL and Yarra Trams, further strengthening Aeeris’ presence in transport and critical infrastructure.

Advanced Braking (ASX:ABV) – record quarterly result

 ABV designs, manufactures and distributes its innovative braking solutions, and has been recording strong growth as it expands its global footprint. ABV reported an exceptionally strong second quarter with total revenue of $5.6m, up 34%. ABV’s revenue is comprised of both brake product sales and spares/consumables. Remarkably, new brake sales increased 52% in the December quarter, driven by strong customer uptake and continued expansion of the install base. This rising install base is a leading indicator for future spares and consumables revenues, which is an attractive source of recurring-type revenue for ABV.

ABV’s profit before tax for Q2 also increased strongly and is expected to be $0.35m (+191%) demonstrating the operating leverage in the business.

ABV’s success in recent years is also evidenced by its cash position of $4.1m as at 31 December 2025. ABV was capital constrained for many years maintaining a cash balance of between $0m – $2m, but its recent strong growth in profit (and cash flow) under the leadership of Andrew Booth, has seen its balance sheet strengthen without the need for a capital raise. These improved fundamentals, we expect, will enable ABV to pay its maiden dividend this year.

 As we write this update, entering February, market volatility has picked up, particularly in relation to more risky assets.

We note that each of the five names discussed above that provided January updates continue to grow well (all at double digit rates) and are profitable, are demonstrating operating leverage and therefore their intrinsic value is increasing. All five have strong net cash positions. These robust underlying fundamentals are consistent across the majority of our portfolio, as we focus on our strategy of owning long term positions in not widely owned, under-the-radar businesses that have strong growth profiles and attractive valuations. We have conviction that the portfolio has meaningful upside, and, as we have through many of the previous periods of market turbulence, we will take advantage of short-term volatility to add to our positions.

The fund remains open for investment, so please contact us if you would like to add to your investment.

We thank you for your continued support and look forward to updating you next month.