QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2020

Apr 29, 2020

Thursday, 30 April 2020 ASX Code : QUE

QUARTERLY ACTIVITIES REPORT for the quarter ending 31 March 2020

This Quarterly Activities Report is provided to the Australian Securities Exchange (ASX) under ASX Listing Rule 4.7C.

Current Quarter:	1 January 2020 to 31 March 2020
Previous Quarter:	1 October 2019 to 31 December 2019
Balance Date:	31 March 2020
Company:	Queste Communications Ltd (QUE or the Company)
Consolidated Entity:	The Company and controlled entities (Queste), being ASX-listedOrion Equities Limited (A.C.N. 000 742 843) (OEQ) and controlledentities of OEQ (Orion).

As at Balance Date and currently, QUE holds 9,367,653 shares in Orion, being 59.86% of its issued ordinary share capital (31 December 2019: 9,367,653 shares (59.86%)). Orion has been recognised as a controlled entity and included as part of the Queste Consolidated Entity's results since 1 July 2002.

The accompanying Appendix 4C Cash Flow Report (provided under ASX Listing Rule 4.7B) in respect of the Current Quarter separately discloses the cash flows of the Company (ie. QUE solely) and the Consolidated Entity (incorporating QUE and Orion).

Details of Business Activities

The Consolidated Entity's business activities incorporates the business activities and results of controlled entity, OEQ.

Business Activities of QUE

The business activities of QUE during the Current Quarter relates to the management of its assets.

In addition to the investment in controlled entity, Orion (as above), QUE has a direct share investment in Associate entity, Bentley Capital Limited (ASX:BEL), being 1,225,752 shares (or 1.61% of BEL's issued ordinary share capital) (31 December 2019: 1,225,752 shares and 1.61%).

The market value of QUE's investment portfolio is as follows:

	31-Mar-20
		%
	No. Shares Held		Interest Last Bid Price	Value
Shares in Orion Equities Limited (ASX:OEQ)	9,367,653	59.86 %	$0.048	$449,647
Shares in Bentley Capital Limited (ASX:BEL)	1,225,752	1.61 %	$0.026	$31.870
				$481,517

www.queste.com.au

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 T | (08) 9214 9777 E | info@queste.com.au

Business Activities of Orion

Orion is a listed investment company.

The business activities of Orion during the Current Quarter relates to the management of its investments, including investments in listed and unlisted securities and real estate held for development and resale.

Queste refers to the monthly net tangible asset (NTA) disclosures lodged by Orion in respect of the Current Quarter:

• 14 February 2020: Net Tangible Asset Backing – 31 January 2020;
• 13 March 2020: Net Tangible Asset Backing – 29 February 2020; and
• 14 April 2020: Net Tangible Asset Backing – 31 March 2020.

Information concerning Orion may be viewed from its website: www.orionequities.com.au

Orion's market announcements may also be viewed from the ASX website (www.asx.com.au) under ASX code "OEQ".

Material Developments or Changes in Business Activities

There were no material developments or changes in the business activities of QUE and OEQ during the Current Quarter.

Summary of Expenditure Incurred in Business Activities

A summary of expenditure incurred in relation to cash flows from operating activities reported in the Appendix 4C Cash Flow Report is as follows:

For Current Quarter ending 31 March 2020	Company$'000	Consolidated Entity$'000
Land operation expenses	-	2
Personnel expenses	31	34
Occupancy expenses	3	9
Corporate expenses	4	11
Administration expenses	(4)	17
Total Expenditure	34	73

Explanation of Payments to Related Parties

During the quarter, the Consolidated Entity paid $3k employer statutory superannuation obligations in respect of Orion's Directors. This is disclosed in Item 6 of the accompanying Appendix 4C Cash Flow Report.

AUTHORISED FOR RELEASE BY AND FOR FURTHER INFORMATION:

Farooq Khan T | (08) 9214 9777 Executive Chairman E | info@queste.com.au and Managing Director

Victor Ho Executive Director T | 0413 735 165 and Company Secretary E | cosec@queste.com.au

March 2020 Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

QUESTE COMMUNICATIONS LTD and controlled entity

ABN

Quarter Ended (current quarter)

58 081 688 164					31 March 2020
		Company			Consolidated
		Current Quarter	Year to Date	Current Quarter	Year to Date
	Consolidated statement of cash flows	Mar20	9 months	Mar20	9 months
		$A' 000	$A' 000	$A' 000	$A' 000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-	-	19
1.2	Payments for
	(a)research and development	-	-	-	-
	(b)product manufacturing and operating costs	-	-	-	-
	(c)advertising and marketing	-	-	-	-
	(d)leased assets	-	-	-	-
	(e)staff costs	(31)	(108)	(34)	(433)
	(f)administration and corporate costs	(3)	(37)	(39)	(178)
1.3	Dividends received (see note 3)	-	-	-	-
1.4	Interest received	-	1	-	3
1.5	Interest and other costs of finance paid	-	-	-	-
1.6	Income taxes paid	-	-	-	-
1.7	Government grants and tax incentives	-	-	-	-
1.8	Other (provide details if material)	-	28	-	28
1.9	Net cash from / (used in) operating activities	(34)	(116)	(73)	(561)
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)entities	-	-	-	-
	(b)businesses	-	-	-	-
	(c)property, plant and equipment	-	-	-	-
	(d)investments	-	-	-	-
	(e)intellectual property	-	-	-	-
	other non-current assets(f)	-	-	-	-

Notes:

The Company currently has a 59.86% (31 December 2019: 59.86%) interest in ASX listed investment company, Orion Equities Limited ("OEQ"). OEQ is a controlled entity of the Company under the Accounting Standards. Therefore, the Consolidated columns in this Monthly Cash Flow Report takes into account the cash flows of the Company and its controlled entity, including OEQ.

		Company		Consolidated
		Current Quarter	Year to Date	Current Quarter	Year to Date
	Consolidated statement of cash flows	Mar20	9 months	Mar20	9 months
		$A' 000	$A' 000	$A' 000	$A' 000
2.	Cash flows from investing activities (continued)
	Proceeds from the disposal of:
2.2	(a)entities
	(b)businesses	-	-	-	-
	(c)property, plant and equipment	-	-	-	-
	(d)investments	-	-	-	-
	(e)intellectual property	-	-	-	-
	other non-current assets	-	-	-	-
	(f)	-	-	-	-
2.3	Cash flows from loans to other entities	-	-	-	-
2.4	Dividends received (see note 3)	-	-	-	-
2.5	Other (provide details if material)	-	-	-	-
2.6	Net cash from / (used in) investing activities	-	-	-	-
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities (excluding	-	-	-	-
	convertible debt securities)
3.2	Proceeds from issue of convertible debt securities	-	-	-	-
3.3	Proceeds from exercise of options	-	-	-	-
3.4	Transaction costs related to issues of equity	-	-	-	-
	securities or convertible debt securities
3.5	Proceeds from borrowings	40	90	-	-
3.6	Repayment of borrowings	-	-	-	-
3.7	Transaction costs related to loans and borrowings	-	-	-	-
3.8	Dividends paid	-	-	-	-
3.9	Other (provide details if material)	-	-	-	-
3.10	Net cash from / (used in) financing activities	40	90	-	-
4.	Net increase / (decrease) in cash and cashequivalents for the period
4.1	Cash and cash equivalents at beginning of period	27	59	384	872
4.2	Net cash from/(used in) operating activities	(34)	(116)	(73)	(561)
	(item 1.9 above)
4.3	Net cash from/(used in) investing activities	-	-	-	-
	(item 2.6 above)
4.4	Net cash from/(used in) financing activities	40	90	-	-
	(item 3.10 above)
4.5	Effect of movement in exchange rates on cash held	-	-	-	-
4.6	Cash and cash equivalents at end of period	33	33	311	311

5.	Reconciliation of cash and cash equivalents	Company		Consolidated
	at the end of the quarter (as shown in the consolidated	Current Quarter	Previous Quarter	Current Quarter	Previous Quarter
	statement of cash flows) to the related items in the	Mar20	Dec 19	Mar20	Dec 19
	accounts	$A' 000	$A' 000	$A' 000	$A' 000
5.1	Bank balances	9	3	287	360
5.2	Call deposits	24	24	24	24
5.3	Bank overdrafts	-	-	-	-
5.4	Other (provide details)	-	-	-	-
5.5	Cash and cash equivalents at end of quarter (shouldequal item 4.6 above)	33	27	311	384

6.	Payments to related parties of the entity and their associates	Current Quarter$A' 000
6.1	Aggregate amount of payments to related parties and their associates included in item 1	(3)
6.2	Aggregate amount of payments to related parties and their associates included in item 2	-

6.3	Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
	Payments for Item 6.1 includes:
	(1) Attributable to Controlled Entity, OEQ.

7.	Financing facilities availableAdd notes as necessary for an understanding ofthe position	Total facility amountat quarter end$A' 000	Amount drawnat quarter end$A' 000
7.1	Loan facilities	200	90
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	200	90

7.5 Unused financing facilities available at quarter end

110

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

Note: OEQ and QUE have entered into a Loan Agreement for OEQ to advance up to $200,000 to QUE. The loan is unsecured and matures on 31 December 2020 and accrues interest at 10% pa in respect of the first $150,000 advanced, and 7.5% pa in respect of $50,000 advanced thereafter.

8.	Estimated cash available for future operating activities	Company	Consolidated
		$A' 000	$A' 000
8.1	Net cash from / (used in) operating activities (Item 1.9)	(34)	(73)
8.2	Cash and cash equivalents at quarter end (Item 4.6)	33	311
8.3	Unused finance facilities available at quarter end (Item 7.5)	110	-
8.4	Total available funding (Item 8.2 + Item 8.3)	143	311
8.5	Estimated quarters of funding available (Item 8.4 divided by Item 8.1)	4	4

8.6 If Item 8.5 is less than 2 quarters, please provide answers to the following questions:

1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Not applicable

1. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Not applicable

Not applicable 3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Compliance statement

1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2. This statement gives a true and fair view of the matters disclosed.

Authorised by

30 April 2020

Victor Ho Executive Director & Company Secretary

The Company currently holds the following listed share investments:

			31-Mar-20
	No Shares/Units	% Interest	Last Bid Price	Market Value
Shares in Orion Equities Limited (OEQ)	9,367,653	59.86 %	$0.048	$449,647
Shares in Bentley Capital Limited (BEL)	1,225,752	1.61 %	$0.026	$31,870
				$481,517

The above investments are regarded as liquid assets to supplement the Company's cash reserves.

See Chapter 19 of ASX Listing Rules for defined terms

Notes

• 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
• 1. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
• 1. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
• 5 If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

AUTHORISED FOR RELEASE BY AND FOR FURTHER INFORMATION

Victor Ho Executive Director & Company Secretary T| 0413 735 165 E| cosec@queste.com.au