Design Milk Co Limited Half-year Report Overview

Design Milk Co Limited (ASX: $DMC) has reported its half-year results for the period ending 31 December 2023. The company, which ceased its main operating business in June 2023, is now an investment vehicle exploring future business opportunities. The consolidated entity reported a loss of US$124,497 after providing for income tax, a significant reduction from the US$343,437 loss reported in the same period in 2022. The company's activities during this financial half-year were limited to professional fees, administrative expenditure, and finance costs.

Executive Commentary

The company has executed a conditional share sale agreement with key shareholders of LVX Global Holdings Limited to acquire the leading data-driven, technology-led, end-to-end Smart Buildings and Internet of Things ('IOT') business operated by LVX. The proposed transaction is in progress, and the company aims to complete the transaction and relist in the 2024 calendar year. Additionally, LVX has launched a pro-rata entitlement offer to provide working capital and facilitate a balance sheet restructure. The directors will continue to monitor the implications for the agreement already executed.

Summary of Design Milk Co Limited Half-year Report

Design Milk Co Limited has reported a reduced loss for the half-year ended 31 December 2023, following the disposal of its main operating business in June 2023. The company is now focused on exploring future business opportunities and has executed a conditional share sale agreement with LVX Global Holdings Limited to acquire a leading data-driven, technology-led, end-to-end Smart Buildings and Internet of Things ('IOT') business. The proposed transaction is expected to be completed, and the company aims to relist in the 2024 calendar year. The company's ability to continue as a going concern is dependent on acquiring suitable businesses and raising future capital, with a material uncertainty that may cast doubt upon its ability to do so.