First ever annual letter!
Dalmilling Capital Shareholder Report
Financial Year: FY24-FY25
Prepared by: Elijah, Founder
1. Executive Summary
This is our first letter. And with that comes a responsibility, as it sets the tone
henceforth. The point is to hold myself accountable and to prepare for the future. In
this edition I will not delve too much into tropes, however I endeavour to explain how I
think, and where we’re going.
Dalmilling Capital has a simple purpose: to quietly own a small number of quality
businesses for the long haul. Holding company if you will. The company is not an
investment vehicle, nor is it a fund or operating a financial service. I think this is
important to clearly outline as I do not want to foul the regulations with regard to
business operating financial services.
You can read more on what we are not here: https://asic.gov.au/for-financeprofessionals/afs-licensees/. Everything printed on that page is what we are not.
With that out of the way, I have a ten year vision for this company, which I will discuss more in my next letters. Since you are reading, you fellow reader, are in fact a partner.
That means your vision is aligned with mine and we are on this journey together. For that reason, it is no longer I, rather we.
We are not in a rush. We are not trying to impress anyone. We are building something that can last.
2. Before numbers, we start with our core beliefs:
• We are not traders, hedge funds or investment vehicles.
• We think in decades, not quarters
• We reinvest all capital until we can produce sustainable returns
• We value simplicity, patience, and discipline over scale or speed.
• We only act when we understand what we’re doing.
We do not borrow money. We do not chase themes. And we do not measure ourselves by activity.
These principles are non-negotiable. They keep us from doing stupid things, especially when it gets noisy.
Year in Review
1. Capital Base
We began the year with permanent capital contributed solely by the founder. There are no external partners limited by shares, no redemption rights, and no exit timelines.
This structure gives us the rarest asset in investing: freedom to wait.
As of 30 June 2025, our capital base remains fully intact, with no investments made.
We are in no hurry to move.
2. First Steps in Public Markets
We conducted early-stage research into two ASX-listed businesses that meet our standards. These are steady, profitable operators in essential sectors. We have not yet taken a position, but they remain under active review.
We filtered opportunities through our guiding principles, prioritised quality over speed, and showed good judgement in walking away when conviction wasn’t there.
3. Private Company Diligence
We spent time meeting owners of small to midsize businesses in our target sectors to better understand what they do. Due to our limited capital, we were not looking to acquire any business, but it is prudent to understand what the business undertaking is.
We engaged deeply with two potential sellers. In both cases, we walked away. Not because the businesses were bad, but because they were not right for us.
We are not looking for activity. We are looking for lifelong alignment.
How We Think About Results
We do not report quarterly returns as there are no benchmarks here. We judge ourselves by a few clear questions:
• Are we staying within our circle of competence?
• Are we walking away more than we are saying yes?
• Are the people we want to work with now taking our calls?
• Are we building trust through how we operate?
By these measures, we are where we hoped to be after year one, albeit we are not in any position to satisfy any of those questions at the time of writing!
Looking Ahead
The next 12 months will be similar. We plan to:
• Consistently network with SME accountants and small business restructuring professionals
• Track and study public companies we would be proud to own a part of
• Maintain a lean and disciplined operation
• Deploy capital only when clarity, quality, and price align
Appendix: Disclosures and Financial Notes
As of 30 June 2025
1. Capital Base
Dalmilling Capital is privately held. The capital base remains fully intact and unencumbered. No capital has been deployed during the financial year.
Initial funding was contributed solely by the founder. There are no outside investors, financial obligations, or redemption rights. We do not use debt.
2. Investments
No positions were taken during this period. We are actively researching opportunities in two categories:
• Public companies listed on the ASX that are profitable, simple, and financially stable
• Private businesses in essential sectors with strong operators and succession potential
Our process is patient and focused and we will move only when we understand the business and are comfortable with the people behind it.
| Item | Summary |
| Total Capital Raised | 1000 |
| Shares Issued | 10000 |
| Estimated Intrinsic Value | 7800 |
| Value per Share | 0.78 |
| Dividend Declared | 0 |
| Net Income | 0 |
| Operating Expenses | 354 |
| Investments Made | 0 |
3. Operating Expenses
Expenses were minimal and self-funded. These included:
• Legal and structural setup
• Travel for site visits and relationship building
• Research and diligence expenses related to potential investments
We do not pay salaries, fees, or bonuses. All costs are reviewed with owner’s discipline.
4. Ownership Table (Cap Table)
5. Reporting Practices
We do not report unrealised changes in value or theoretical returns. Only realised gains, retained earnings, and dividends will be reflected in future reports.
Once capital is deployed, we will include company-level commentary to explain the “why” behind each position.
6. Positions & Asset Activity (Year to Date)
7. Financial Summary
Balance Sheet (as of 30 June 2025):
Shareholder Shares % Ownership Value ($)
Dalmilling Founder 10000 100 7800
Total 10000 100 7800
Position Type Date Amount Notes
– – – – No activity yet (capital held)
Item Amount ($)
Cash & Equivalents 1000
Investments 0
Liabilities 0
Equity (Book) 1000
Estimated Intrinsic Value 7800
Closing Thoughts
We are building Dalmilling slowly and deliberately. That is not by default, it is by design.
There is no glamour in holding cash, passing on deals, or turning down growth for its own sake. But there is great value in doing the right thing at the right time, and waiting when the time is not yet right.
We are grateful to be on this path. And more grateful still that you are walking it with us.
Warmly,
Founder, Dalmilling Capital
Dalmilling Capital 
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