Reported Earnings • Feb 20
First half 2024 earnings released: AU$0.028 loss per share (vs AU$0.032 profit in 1H 2023) First half 2024 results: AU$0.028 loss per share (down from AU$0.032 profit in 1H 2023). Revenue: AU$71.7m (up 12% from 1H 2023). Net loss: AU$1.06m (down 187% from profit in 1H 2023). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. New Risk • Feb 16
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.5% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shares are highly illiquid. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (5.5% increase in shares outstanding). Significant insider selling over the past 3 months (AU$2.0m sold). Market cap is less than US$100m (AU$49.7m market cap, or US$32.4m). Recent Insider Transactions • Feb 13
Insider recently sold AU$529k worth of stock On the 9th of February, John Hayes sold around 408k shares on-market at roughly AU$1.29 per share. This transaction amounted to 63% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth AU$1.0m. Insiders have been net sellers, collectively disposing of AU$2.6m more than they bought in the last 12 months. Upcoming Dividend • Feb 12
Upcoming dividend of AU$0.10 per share at 4.4% yield Eligible shareholders must have bought the stock before 19 February 2024. Payment date: 01 March 2024. Payout ratio is a comfortable 73% and this is well supported by cash flows. Trailing yield: 4.4%. Lower than top quartile of Australian dividend payers (6.6%). Higher than average of industry peers (3.8%). Recent Insider Transactions • Jan 30
Insider recently sold AU$1.0m worth of stock On the 25th of January, John Hayes sold around 785k shares on-market at roughly AU$1.30 per share. This transaction amounted to 55% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth AU$1.5m. Insiders have been net sellers, collectively disposing of AU$2.0m more than they bought in the last 12 months. Upcoming Dividend • Jan 23
Upcoming dividend of AU$0.02 per share at 4.3% yield Eligible shareholders must have bought the stock before 30 January 2024. Payment date: 01 March 2024. Payout ratio is a comfortable 73% and this is well supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of Australian dividend payers (6.8%). Higher than average of industry peers (3.9%). Board Change • Dec 29
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Non-Executive Chairman Peter Brook was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Dec 13
Insider recently sold AU$462k worth of stock On the 11th of December, John Hayes sold around 511k shares on-market at roughly AU$0.90 per share. This transaction amounted to 26% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth AU$1.5m. Insiders have been net sellers, collectively disposing of AU$1.0m more than they bought in the last 12 months. Board Change • Dec 07
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Non-Executive Chairman Peter Brook was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Nov 13
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: AU$1.5m This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Shares are highly illiquid. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Significant insider selling over the past 3 months (AU$1.5m sold). Market cap is less than US$100m (AU$47.1m market cap, or US$30.0m). Board Change • Nov 13
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Non-Executive Chairman Peter Brook was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Duyuru • Jul 04
Diverger Limited (ASX:DVR) and General Manager of Atkinson Saynor David Saynor acquired Atkinson Saynor Private Wealth Pty Ltd for AUD 4.3 million. Diverger Limited (ASX:DVR) and General Manager of Atkinson Saynor David Saynor acquired Atkinson Saynor Private Wealth Pty Ltd for AUD 4.3 million on July 1, 2023. Under the terms, AUD 3.2 million will be paid at completion, followed by a deferred payment of AUD 0.8 million to be paid 8 months after completion and subject to continued business performance. In addition, there is an earn-out incentive of up to AUD 0.30 million payable subject to the business achieving further client growth. Diverger Limited has acquired 55% stake while David Saynor is acquiring the remaining 45% stake.Diverger Limited (ASX:DVR) and General Manager of Atkinson Saynor David Saynor completed the acquisition of Atkinson Saynor Private Wealth Pty Ltd on July 1, 2023. Board Change • May 01
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Non-Executive Chairman Peter Brook was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Board Change • Mar 08
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Non-Executive Chairman Peter Brook was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Duyuru • Jan 17
Diverger Limited (ASX:DVR) acquired Priority Networking Pty Ltd for AUD 2.7 million. Diverger Limited (ASX:DVR) entered into an agreement to acquire Priority Networking Pty Ltd for AUD 2.7 million on January 1, 2023. The initial purchase consideration, funded by Diverger’s existing debt facility, is AUD 2.25 million, with 80% AUD 1.80 million settled on completion and the remaining 20% AUD 0.45 million settled after 12 months subject to PNET achieving EBITA performance targets. In addition, an earn-out incentive of up to AUD 0.45 million, is payable subject to the business meeting an agreed uplift in earnings in the 2nd year. Expected Earnings Before Interest, Tax & Amortisation (EBITA) contribution from PNET is based on FY22 EBITA of AUD 0.45 million per annum. The acquisition is expected to be earnings accretive (pre synergies) to Diverger in FY23, with targeted revenue synergies commencing in year 1. The business principals Greg Gardiner and Jacques Louw will remain in the business and will be supported by Diverger’s team in servicing the existing client base and growing the business.
Diverger Limited (ASX:DVR) completed the acquisition of Priority Networking Pty Ltd on January 17, 2023. 
