DomaCom Australia Ltd (ASX:DCL) is starting to gain some momentum as it continues to progress on many fronts moving into 2022.
The company is stepping forward at a much faster rate and looking to push through the $100 million barrier shortly.
It has 99 deals done, with $97 million invested so far.
The operating environment ahead highlights DomaCom technology and its flexibility in meeting the challenges ahead.
The management, staff and the board, supported by new and long-term shareholders, with their unwavering belief in the future of fractional investing, have stuck to the task.
Board renewal
The board is larger than normal in the interest of material shareholders.
Two long-term board members are retiring – Peter Church and David Archbold.
Also, Graeme Billings has moved to chair another ASX-listed company.
DomaCom board renewal will continue in 2022, in line with ASX good corporate governance principles.
Optimal conditions
With government focus on this important area, senior equity release is expected to gain greater momentum going forward.
Affordable housing demand will ensure the growth in funds under management (FUM).
Further, ESG focus by many investors supports the continuation of DomaCom’s renewable energy projects.
The rebirth in the growth of the self-managed super funds (SMSF) market is also creating greater opportunities.
Operating environment ahead
DomaCom’s operating environment ahead:
➢ Interest rates to remain low to 2023 at earliest;
➢ Bond yields to rise if inflation stays steady at circa 2%;
➢ Share market to taper off – most return coming from dividend yield;
➢ Inflationary spikes but transitory not long term;
➢ Caution - European countries going back into 'lockdowns';
➢ Bigger demand for non-listed investments;
➢ Chase for yield – where from and at what risk;
➢ Increasing demand for ESG; and
➢ Cryptocurrencies – fear of missing out (FOMO)
AustAgri acquisition
DomaCom is waiting for the transaction finance facility to be refinanced with long-term debt.
It is now targeting a first-quarter 2022 completion.
Expansion into companies
DomaCom is able to leverage off the 2017 Australian Finance Services LIcence (AFSL) change allowing it to “deal in securities”.
This provides small and medium-sized enterprises (SMEs) with governance and liquidity solutions, with pathway to ASX listing for some companies.
ASX review
DCL has completed its $3.7 million capital raising on December 2, 2021, and has lodged a request for the resumption of the trading of its shares.
It is now awaiting the completion of ASX’s review.