The Capital Brief | MHJ, MSB, OIL, NIC and ECH

This year’s edition of the ASX’s period ended June reporting period is now coming to a close.

It has thrown up some quite respectable results announcements over the past week, some of which added to the very select group of businesses that reported improved financials on the back of successfully executed turnaround strategies. 

In other news, we are pleased to welcome Mesoblast (ASX:MSB) to our growing portfolio and two other companies that I will acquaint you with soon. 

Back to reporting season: the past week’s batch of results also swelled the already substantial list of companies that demonstrated delivery of stated growth strategies. The companies covered in this edition of the TCN Newsletter have all recently issued period ended June results that placed them in one or the other of these two groups. 

Michael Hill International (NZX/ASX:MHJ) released FY26 results that showed its well enunciated turnaround strategy was now paying dividends - literally and figuratively - for its shareholders.

Mesoblast (ASX:MSB), Optiscan Imaging (ASX:OIL), Nickel Industries (ASX:NIC) and Echelon Resources (ASX:ECH) issued results announcements that clearly showed all four companies were progressing their respective development and/or commercialisation strategies.

With earnings season near complete, investors will soon have to find other things to grab their attention – over and above the fact that Spring and warmer weather are thankfully just around the corner. Bring it on. 

Michael Hill International (NZX/ASX:MHJ)

Michael Hill International (NZX/ASX:MHJ) is a global fine jewellery brand that started from a single store in New Zealand back in 1979. Since that time, the company has grown rapidly and now has a large store network comprising around 280 stores spread across NZ, Australia and Canada.

The company’s just released FY26 results revealed growth at both the revenues (up almost 4% on a constant currency basis) and earnings lines (with Comparable EBIT surging by 57%).

The FY26-on-FY25 revenue gain reflected broad-based growth across Micheal Hill’s three distinct geographic markets, as its deliberate move to adopt a localised approach to each market rather than a one-size-fits-all strategy bolstered sales.

The company’s Canada-based store network was a star performer over FY26, delivering a record year with same store sales growth of 7% and online sales growth of 22%.

Margin performance held firm over FY26, assisted by a good recovery in the Bevilles business, as its turnaround strategy gained traction. Holding the line on margins was a notable achievement in the face of record high global gold prices in place over a significant part of FY26 and challenges presenting from a promotional retail environment angle.

Michael Hill’s improved income statement metrics came as its new leadership team simplified the company’s strategic direction and sharpened its focus on the group’s two core brands of Michael Hill and Bevilles.

The company also significantly enhanced balance sheet robustness over its FY26, paring back group net debt to just -$5.5m by the end of the year (from an end-FY25 figure of -$41.9m).

In the light of this balance sheet robustness, Michael Hill returned to being a dividend paying company, with a final FY26 dividend of 2.0 cents a share declared.

Michael Hill has also started its FY27 year on a positive note. The company’s Australia, NZ and Canadian operations have enjoyed revenue growth on a PCP basis over the first eight weeks of the new year, while margin performance was also improved.

Clearly, for all the talk of household spending fragility in the face of current cost of living crises in Western economies, consumers are still willing to celebrate meaningful life moments or partake in some retail therapy.

Optiscan Imaging (ASX:OIL)

Optiscan Imaging (ASX:OIL) is a commercial stage medical technology company creating a suite of digital pathology and precision surgery hardware and software solutions that enable live optical biopsy for life sciences, diagnostic and surgical applications.

The company’s FY26 saw it transition from being a technology developer to a clinical-stage medical device company that is now progressing a raft of regulatory approval and commercialisation initiatives.

A major deliverable in Optiscan’s FY26 was the submission of its first FDA regulatory dossier, which was for the company’s veterinary device, InSpecta™. The latter device was subsequently commercially launched into the large and lucrative US veterinary market.

The abovementioned dossier submission has established an important regulatory pathway for future submissions across Optiscan’s broader portfolio, including the company’s InVue™ and InForm™.platforms.

In the meantime, validation of Optiscan’s human healthcare devices was advanced over the course of FY26 through studies that are demonstrating the clinical utility of Optiscan’s technology in real-world surgical settings.

The year saw Optiscan commence its first head and neck cancer imaging study in Perth. It is generating valuable clinical data that will both support Optiscan’s future FDA submissions, and also contribute to the development of the company’s artificial intelligence imaging program.

Optiscan also reached the halfway recruitment milestone in its breast cancer imaging study in Melbourne, which continues to generate critical clinical evidence supporting the future regulatory pathways for both InVue™ and InForm™.

In the US, the company initiated US-based Mayo clinical studies, the results from which will support regulatory submissions for InVueTM and InFormTM.

Optiscan also strengthened its balance sheet in FY26, with a $17.75m capital raising, the proceeds of which will fund clinical studies for regulatory submissions, commercialisation initiatives, and further R&D.

Nickel Industries (ASX:NIC)

Nickel Industries (ASX:NIC) owns a portfolio of mining and low-cost downstream nickel processing assets in Indonesia. It is continuing to build an integrated platform that leverages ongoing growth in the EV battery supply chain.

The company’s six months to end-June 2026 results announcement, which is also the first half of its 2026 financial year (H1 FY26) contained a number of financial and operational milestones.

At the bottom line, the company’s H1 FY26 NPAT was US$74.3m, well up on the US$25.5m reported in the previous corresponding period (PCP).

Drilling down, Nickel Industries’ processing operations produced a combined 62,019 tonnes of nickel metal over the half year, with most of this total nickel in nickel pig iron. Adjusted EBITDA rose strongly on a PCP basis across both the company’s Rotary Kiln Electric Furnace (RKEF) Processing and High Pressure Acid Leaching (HPAL) Processing arms.

The company’s Hengjaya Mine produced almost 8.1m wet metric tonnes (wmt) of nickel ore over the course of its H1 FY26, and sold around 5.9m wmt of nickel ore over the period. Its H1 FY26 adjusted EBITDA was US$73.4m (up 4% on PCP).

In March 2026, the Hengjaya Mine received its RKAB approval for 2026 nickel ore sales, which was increased from 9.0m wmt to 14.3m wmt for the year ended 31 December 2026.

Nickel Industries continued to expand its business operations over the H1 FY26 period. The company completed its final equity acquisition in the Excelsior Nickel Cobalt (ENC) project, acquiring a further 2% for US$46m. This took the company’s interest in this asset to 46%.

Late in H1 FY26, Nickel Industries agreed to invest US$169m for a 17.5% interest in the Teluk Metal Industry (TMI) HPAL project, with the acquisition payment due in November 2026.

Nickel Industries also entered into a binding Framework Agreement to acquire an indirect 36% interest in the Chengsheng New Energy (CNE) HPAL project, in return for an 18% interest in two of the company’s Sampala Project IUPs.

While these transactions were being progressed and/or delivered, the company at the same time strengthened its balance sheet. In April 2026, Nickel Industries executed US$450m in syndicated loan facilities, which saw the company refinance all its existing US$398m of bank loans.

Mesoblast (ASX:MSB)

Mesoblast (ASX:MSB) is a world leader in developing allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions.

The company has just released its FY26 annual report, which detailed the many operational milestones delivered this 12 month period.

The commercialisation strategy for its FDA-approved RYONCIL^® product, which treats steroid-refractory acute graft versus host disease (SR-aGvHD) in pediatric patients 2 months and older, was materially progressed over the year.

RYONCIL^® was launched in the US for the treatment of children with SR-aGvHD, a milestone that established Mesoblast as a fully integrated commercial-stage biotechnology company.

Reflective of this transition to commercial-stage status, Mesoblast’s FY26 net product sales totalled around US$115.2m, more than 10 times the prior year figure of US$11.3m.

Mesoblast progressed its RYONCIL^® commercialisation strategy on multiple fronts over its FY26.

It secured broad institutional adoption of RYONCIL^® at leading pediatric transplant centers across the US, onboarding more than 50 sites since its launch, including 14 of the 15 largest sites that account for nearly half of pediatric transplant volumes.

These achievements went hand-in-hand with favourable adjustments to commercial arrangements. These included the delivery of expanded payer coverage and reimbursement access to over 280m covered lives across commercial and government payors. This in turn supported increased patient treatment and facilitated an acceleration in market penetration.

Looking to the future, Mesoblast undertook a myriad of commercial-, medical affairs-, market access-, patient services- and distribution infrastructure-related tasks over its FY26 that will, going forward, support long-term revenue growth.

Mesoblast also worked hard to expand the addressable market for RYONCIL^®. It moved to extend the treatment’s FDA-approved label beyond children to adults with SR-aGvHD.

Mesoblast’s FY26 also saw the company progress the development strategy for its rexlemestrocel-L treatment. It completed 350 patient treatments in the pivotal randomized controlled Phase 3 trial of rexlemestrocel-L for chronic low back pain (CLBP) associated with inflammatory degenerative disc disease.

The company’s FY26 R&D included programs focused on expanding and diversifying its pipeline by developing products emanating from two next gen technology platforms: chimeric antigen receptor modified mesenchymal stromal cells (CAR-MSC) and oncolytic virus loaded mesenchymal stromal cells (OV-MSC).

Echelon Resources (ASX:ECH)

Echelon Resources (ASX:ECH) delivered a significantly stronger financial result in FY26, underpinned by improved gas pricing, strong performance from its Amadeus Basin assets, substantial debt reduction and the successful sale of its interest in Cue Energy Resources.

The company’s Group Net Profit after Tax increased 341 percent to A$28.2 million, while profit attributable to Echelon shareholders rose 657 percent to A$24.4 million. Earnings per share also increased 657 percent to 10.8 cents.

Revenue from continuing operations increased 5 percent to A$63.4 million, supported by stronger realised gas prices across the Amadeus Basin.

The company’s continuing operations generated A$8.6 million in NPAT, compared with A$0.1 million in FY25, reflecting a substantially stronger underlying performance from Echelon’s core business.

The Amadeus Basin remains at the heart of Echelon’s producing portfolio, generating A$56.2 million in sales revenue during FY26, representing almost 90 percent of continuing revenue.

Natural gas and LPG revenue increased 12 percent to A$59.5 million, with stronger realised gas prices more than offsetting marginally lower gas production. Mereenie remained the dominant producing asset, while Dingo delivered higher gas sales during the year.

Echelon also significantly strengthened its balance sheet, repaying A$37.0 million of debt during FY26. External bank borrowings were reduced by almost 80 percent, from A$47.5 million at 30 June 2025 to A$10.5 million at year end.

The company also completed the sale of its interest in Cue Energy, realising A$42.1 million in value and recognising a A$12.1 million gain on disposal. As part of the transaction, Echelon received 117.8 million Horizon Oil shares, providing the company with a 6.64 percent interest in Horizon and continued exposure to the future value of the combined business.

The Cue transaction has allowed Echelon to streamline its portfolio, reduce debt and focus capital and management attention on its directly held producing assets and future growth opportunities.

Echelon invested A$16.0 million in its oil and gas assets during FY26 and is continuing to invest in growing production across the Amadeus Basin.

Drilling is already underway at Palm Valley, with PV14 the first well in a two-well programme and first gas targeted for October 2026. Further drilling across the Amadeus acreage is planned as Echelon continues to grow production to meet demand for reliable gas.

With approximately A$47.3 million of its debt facility undrawn at year end, the company enters FY27 with greater financial flexibility to invest in its producing assets and pursue opportunities that complement its existing portfolio.