Country write-down, which DGL recognized in its FY 2025 accounts. Nor did the audit process identify material misstatements arising from any control failures, which supports the board's confidence in the underlying integrity of the financial records. DGL continues to make substantial investments in strengthening its control environment, including implementing our new ERP system, which will provide enhanced controls and reporting capabilities across the group. As we've disclosed, DGL experienced a fraud incident in August last year by an individual in a newly acquired business. The incident was not financially material, so it was not announced at the time. After taking steps to limit the individual's access to systems, we advised our auditor and investigated the incident. The individual immediately admitted to the fraud and offered to repay the funds. There was no evidence found at the time or since of other fraud in the business.
After very carefully assessing the situation, it was evident that the individual held key customer relationships and market intellectual property that was far more valuable to DGL than the potential loss. After extensive further consideration, we made a commercial decision to retain the individual for an interim period in a more junior role and with restricted system access. During this period, key customer relationships and market IP were transferred to others in the DGL Group. At our auditor's request, we engaged a forensic accountant to investigate the fraud incident. The independent investigation did not identify evidence of any additional fraudulent transactions by the individual other than those that we identified ourselves. As a result of this managed process, we recovered 70% of the lost funds with a net loss of AUD 130,000. Importantly, we successfully protected key customer relationships worth far more to DGL in terms of shareholder value.
The individual has since left DGL, and the business he was employed in continues to perform strongly. In terms of the ASX listing situation, the board knows that the extended period of suspension from the ASX is a major concern for shareholders. We've been working constructively with the ASX to achieve reinstatement to quotation at the earliest opportunity. As we've announced, the ASX has confirmed that an audit report for the half-year period to 31 December will be acceptable to the ASX on the basis that there's no modifications of a pervasive nature. This would allow ASX to reinstate DGL securities to quotation, subject to ASX being satisfied that DGL is compliant with the listing rules at the time. This will take some time, though, till after the audit, and we expect this to occur by the end of February or in March next year.
This is the shortest path we found to lifting the suspension, and we'll update the market if there's any change to this timetable. Over the last year, we've had a focus on the comprehensive integration of some 30 business and asset acquisitions. This includes operational integration as well as integration of the multitude of systems used by the businesses acquired by DGL in recent years. Group-wide ERP and finance, logistics management, and HR and payroll systems will replace over 30 existing standalone systems, leading to cost savings, productivity gains, better management information, improved internal controls, and improved customer service in FY 2026. As many companies experience, the ERP implementation is taking longer than we'd planned, but the project is progressing well. The first phase of implementing these three group-wide systems will be completed by the end of this calendar year, with full implementation expected in the first half of 2026.
On our property strategy, we continue to take a pragmatic approach to property, where we like to own and control properties that are critical to our operations due to having licenses or where we have specialized manufacturing or processing facilities. We're agnostic about owning generic properties such as warehouses. As we've announced, we've sold three non-core properties in the current half-year, with net proceeds of approximately AUD 25.6 million above the combined book value. In relation to our debt, DGL operates a moderate level of debt, and the company is within its banking covenants. We note that the proceeds from the property sales that I've just referred to have recently applied to reducing DGL's debt by approximately 22%. We acknowledge and we appreciate the continued support of our banking syndicate through this period. Turning to the board, we're very pleased to welcome Liz Smith as an independent non-executive director.
Liz joined the board in March this year and brings strong finance, accounting, governance, and other skills, and has recently become chair of our audit and risk committee. We now have a majority of independent directors on the board. I'd like to thank Robert Shusames, who left DGL earlier this year for his long contribution to DGL as an executive director. We're commencing a recruitment process for the chief financial officer role, and we're grateful to Gagan Singh, our financial controller, who stepped into this role on an interim basis. Before I move to closing remarks, it's appropriate to comment on the proxy voting on our remuneration report. The board works hard to ensure executive pay is appropriate and is aligned with the objectives of the business. We believe our remuneration practices are in line with the size of DGL's business and the industries that we operate in.
We've received a high proportion of proxies voting against the remuneration report, and subject to voting at the meeting today, it seems likely that we'll receive a first strike. Consultation with some shareholders indicates that the negative vote, at least in part, reflects frustration regarding our general financial performance and, in particular, the difficult circumstances with the suspension from quotation on the ASX. We understand this frustration, and we take this vote against the remuneration report seriously. In closing, I'd like to say that we're very proud of the critical role played by DGL in supporting industry across Australia and New Zealand. There's no shortage of challenges in delivering our wide range of services, given the cost pressures in the economy and the general business pressures facing DGL's more than 5,000 customers in Australia and New Zealand.
I'd like to thank the board, the management team, and in particular, our dedicated employees across the group who work hard to serve our customers while keeping our operations safe and protecting the community and the environment. I thank them for all their efforts. Finally, I'd like to thank our shareholders for their support and for their patience while we work through this period. We're working hard to resolve the current suspension and audit position while also improving our performance to deliver the returns that you're looking for. I'll now hand over to Simon Henry, our Chief Executive, to provide an update on the business and the outlook for the current financial year.
Thank you very much, Tim. I think you've covered off most of the important elements that I was going to cover off, so I'll make mine brief. Now, if we can turn to the FY 2025 financial performance, Tim's covered off these numbers. Obviously, very pleased there with our cash conversion, our revenue closing in on half a billion a year, but obviously some challenges with our net profit and our statutory net profit that we're working on. We could go to the next slide, please. Key drivers in FY 2025, our manufacturing businesses continue to do well, and we continue to invest in them. Chemical manufacturing and exporting chemicals from our plants in Australia into the U.S. and other markets abroad. A strong focus on agricultural chemicals. We do see chemical manufacturing and packaging as very central to our operations. Our global logistics division continues to prosper and expand.
If we look at some of the challenges we faced in the financial year, as Tim alluded to, increased competition for lead-acid batteries. We have taken the pragmatic step and closed down our Victorian operation and sold the plant and focused our energies on our New South Wales plant. We need to run the New South Wales plant because the battery breaking businesses are joined at the hip to our liquid waste treatment business on the same site. We have invested substantially, moving to more efficient warehouses. Considerable cost pressures across the business that I work with Alex and others on to reduce and manage. We have also written down the value of assets primarily connected to our lead-acid battery operation. We will go to the next slide. We look at the business, and we look at what we can do to improve performance.
Clearly, we will close and dispose of loss-making businesses as we need to. We are completely pragmatic about this. We will continue to invest in those channels and elements of the business that prosper and do well and where we are well established. We are moving from dated, inefficient warehouses to new facilities. It is a significant cost moving a warehouse and chemicals and all the systems we have in them. We do notice immediately an uptick in utilization and attracting national customers. This process has been going on for the last few years, and it has been intense over the last 12 months, but most of the moving is now completed. Since listing, we acquired some 30 businesses, and a lot of work is going on to integrate these businesses into one operating unit. It is a tough job. It costs millions of dollars to do it.
It ties up our senior managers, and we're very much looking forward to getting to the other side of it so we can concentrate on growing the business. As Tim spoke about, we are rolling out a group-wide ERP system. I'm going to say that most of the heavy lifting of this has been done, and over the next six months, we expect to have it fully completed. We're also bringing 30 different payroll systems to one, and once again, most of the heavy lifting here has been done. There's been a significant capital investment into these elements of the business, but the end result is that DGL will be a highly efficient operation. Go to the next slide. DGL is made up of three divisions: chemical manufacturing and formulation, there's the procurement of chemicals, the packaging, the manufacturing, label printing, the full suite of services.
We look at the central division, which is logistics, primarily transport, both packaged and bulk, and warehousing throughout New Zealand and Australia, and also global logistics of moving chemicals around the world. Final division is environmental. This is primarily focused on the treatment of liquid industrial wastes at our Yennora and Darra site. Pleased to be able to advise today that the major development that we've been carrying out there for the past few years and investing some AUD 15 million will come on stream after Christmas, and we hope to start treating waste in the plant in January. Let's move to the next slide. Overall divisional performance. Manufacturing, as I've mentioned, is very key and very central to our operations. We continue to invest our capacity, expand our customer base and our product range. We continue to invest to automate our plants.
Logistics, as mentioned, moving to big, new, efficient warehouses, investing heavily in our IT systems to automate and ensure that we provide the accuracy and the interface and the real-time reporting to our customers. These warehouses are normally licensed to manage all classes of chemicals, including flammable. It's a complex, regulated industry, but that's what we do, and we do a lot of it. We are seeing significantly improved utilization of our warehouse network throughout Australia and New Zealand. Environmental division, as mentioned, we've closed down our loss-making business in Victoria, and we are focusing on the other elements of our environmental operation, our packaged waste, and our liquid waste treatment in New South Wales. Next slide, please. DGL is a chemical company. We can't get away from the fact that we work with complex and sometimes dangerous chemicals, but that's all we do, and we're really focused on safety.
We've got a well-developed health and safety team and framework across the business. A considerable amount of our board meeting time is devoted solely to health and safety and analyzing events and working out systems to be a better and safer operation. We have group-wide training. It's a very central focus of DGL's culture, health and safety, and protecting the environment. We will continue to invest to expand our services and our geographical reach and our capabilities. We will continue to invest in the integration of the businesses we've bought since the IPO. There's still considerable cost to be taken out of the business through this integration, but it's not easy work. It's expensive, a lot of capital, and a lot of time going into it, but we've made very good progress over the last 12 months.
Integrating these businesses onto one platform positions us very well to offer our broad customer base multiple services from one group, and we are seeing better utilization of our divisions by our customers. As I've mentioned more than once now, group-wide ERP to bring all our operations onto one software platform. This will speed up our reporting, our ability to report key metrics to the markets. It will simplify our finance department and speed up our reporting and the accuracy of our stock management. We will go to the next slide. Moving from one software system to another is never easy. Rolling out the new ERP system in our large Victoria- Darra operation significantly impacted on production earlier this year, and revenue is down as a result, and we are fully committed to catching up.
We' ll have most of the catch-up done by Christmas, and we sincerely hope that we will catch up the remainder over the second half of the year. I do not think I have ever met a company that has rolled out a group-wide system that has not had a few headaches along the road, but we are well focused on getting these resolved. As I have mentioned, the majority of the heavy lifting is now done. Logistics, as I have mentioned, better warehouses, better trucks, more efficient trucks, better software, improved performance, and improved utilization. The environmental division focuses on the profit-making elements of this division and obviously extracting full value out of our soon-to-be commissioned liquid waste treatment plant in New South Wales.
Moving along to the outlook. As mentioned, revenue is down primarily as a result of the ERP rollout and the inability to process orders, but we are well committed to catching up these. These are shortfalls. October was a good month for us and broadly on target with our expectations for the business. November will be better than October. It shows us what the business is capable of doing. We continue to reinvest our free cash and our earnings back into the business to grow the scale of the business and to invest for efficiency and to improve our profit margins. Everyone on this call is acutely aware that our shares have been suspended.
As Tim has mentioned, we do not agree with the auditor's opinion, but I will not go back into that in detail. I do want to reassure everyone that the board and I and our senior management are very focused and working very hard to ensure that we achieve the audit that we need at half-year for our shares to come out of suspension. I think I'll hand the AGM back to our Chairman here.
Okay, thank you, Simon. I'll now proceed to the business of the meeting as outlined in the notice of meeting. I propose to take the notice of meeting and the accompanying explanatory memorandum as read. The first item of business is to table and receive the financial statements, Director's report, and Auditor's report of the company for the year ended 30 June 2025. A copy of the annual report was lodged with ASX, and it was sent to shareholders who requested it. The company's auditors are in attendance if shareholders wish to direct any questions to them. I'd like to invite shareholders to ask questions on the report. Hanna, do we have any questions?
Yes, we do have a question received, which has been addressed to the auditor. Given the recent suspension from the ASX under the listing rules, does the auditor have confidence that the CEO, CFO, and senior management of DGL are capable of executing their legal responsibilities to the shareholders? If so, then do you foresee any issues for the management team in meeting their listing requirements over the coming year?
I'll refer this to our auditor, Ken Weldon. Ken, are you able to comment?
I am. Can I just check that you can hear me, Tim?
We can.
Excellent. Thank you. I'd like to thank the shareholder for the question. I'll give some initial comments and then address the question directly. Just in relation to questions of an auditor at an AGM under the Corporations Act, we can comment upon the conduct of the audit, the preparation and content of our auditor's report, the accounting policies adopted by the company in relation to the preparation of the financial statements, and the independence of the audit in relation to its conduct. I'm surprised I thank the shareholder for the question. The matters raised in that question relate to management's responsibilities and decisions, and in particular, they relate to events outside of FY 2025 and by definition outside of the date of the 17th of October, which is when our opinion was signed.
It does not really relate to the scope of the audit for that period, so I think that would be appropriate, Tim, for me to hand that back to you as chair for you and all management to address, and the shareholders can consider that response.
Okay, thanks, Ken. In relation to the listing requirements and our obligations, we know that the ASX suspension is a major concern for shareholders. As I touched on earlier, we've been working constructively with the ASX on our reinstatement to quotation, and they've confirmed that a satisfactory audit of the half-year, rather than the more typical review process for the half-year, will be acceptable for lifting the suspension. Obviously, we also need to comply with the other listing rules at the time, which we don't expect to be an issue.
In terms of timing, we think this will occur hopefully by the end of February, but if not, in March next year, and we have looked at alternatives, but that's the shortest path that we found back to relisting on the ASX. Simon mentioned the half-year audit is going to require additional work, and internal preparation has already commenced for that, but we're confident we'll achieve a satisfactory audit opinion.
Chair, the next question is, did the auditors complain to any authorities, and did that lead ASX to continue suspension?
Not that DGL is aware of, but I'll ask our auditor if he'd like to add to that.
Yeah, thank you. Under the legislation, when I prepare a disclaimer of opinion, and that in and of itself is something that has to be reported to ASIC, and I did that on the day that I lodged the opinion. As the consequence of that, the ongoing suspension of the business, having not lodged its accounts as of the 30th of September, was included in that response, but that is an entirely standard and normal report under the circumstances.
Thanks, Ken. I can add to that that there are no other matters that have been raised with DGL by ASX, ASIC, or the ATO in relation to that.
Thank you. The next question is regarding the financial statements and the audit outcome and the dependency to reinstate ASX trading. If the company disagrees with the auditor's findings or opinion but maintains its position, why does the board not consider a second opinion, specifically getting another reputable audit firm to redo the FY 2025 audit?
We did look at redoing the FY 2025 audit as a potential way of resolving this situation. Unfortunately, with the passing of time, that becomes reasonably impractical, and a good example is how do you go back four or five months and redo the stock take and the inventory when things have moved on? We're a continuous manufacturing business, and it's very hard to backtrack to what the financial situation was there. After taking some pretty extensive advice and talking to the ASX, we've settled on a full audit for the half-year as being the appropriate way to confirm the accounts and move forward from this situation.
Thank you. There are no further questions on the financial report.
Thanks, Hanna. As there's no further questions on the financial report, we'll now move forward to the formal resolutions to be considered by the meeting. All resolutions will be put to a poll, which will be conducted once all of the resolutions have been put to this meeting. Resolution one relates to the adoption of the remuneration report for the year ended 30 June 2025, as found in the annual report. The Corporations Act requires the remuneration report to be up for adoption at the meeting. However, the vote on the resolution is advisory only and does not bind the directors or the company.
The board will, however, take the outcome of the vote into consideration when reviewing remuneration practices and policies in future. I now put the resolution to shareholders to consider, and if thought fit, pass the following resolution as an ordinary resolution: that the remuneration report of DGL, which forms part of DGL's 2025 annual report for the financial year ended 30 June 2025, be adopted. Voting exclusions are contained in the explanatory memorandum accompanying the notice of meeting. The proxies received for resolution one are shown on the screen now, and I put the resolution to members. Are there any questions from shareholders online, specifically in relation to this resolution?
No, no questions on this resolution.
Thank you, Hanna. I will now proceed to the next item on the agenda. Resolution two relates to the election of Elizabeth Smith. I now put the resolution to shareholders to consider, and if thought fit, to pass the following resolution: that Elizabeth Smith, the director who was appointed by the board following the 2024 annual general meeting and being eligible for election, be and is hereby elected a director of the company. Proxies received for resolution two are shown on the screen now, and I put the resolution to members.
I'd like to add that Liz is an experienced non-executive director and an independent director of DGL. Her career includes corporate finance partner roles at William Buck and Grant Thornton and audit experience at Ernst & Young. Liz is a director of the Australian Red Cross and ASX-listed companies Pure Profile and Nuchev. Liz brings strong skills in terms of finance and accounting, strategy, M&A, risk and governance, and extensive experience advising businesses. Are there any questions from shareholders online, specifically in relation to this resolution?
Not specifically for this resolution, no.
Okay, thanks, Hanna. Now that all resolutions have been put to the meeting, I now direct that a poll be held for each of the resolutions. As Chairman, I'll be voting all proxies received as previously outlined in favor of each resolution. James Barry will conduct the poll as returning officer, and voting is now open.
Shareholders who have not lodged their proxy beforehand are encouraged to vote on the poll now. If a shareholder has already voted by proxy, you do not need to vote again unless you want to change your vote. Voting in the poll is entirely optional. For shareholders and visitors who are not voting, please click on Skip Poll. To cast your vote, please click on For, Against, or Abstain for each of the two resolutions, then click Submit. If any shareholders are having difficulty in voting online, please note this in the Q&A function, and our team will endeavor to assist you. These are the two resolutions that have been put to the meeting that we are now conducting the poll for. Please now complete your voting. Okay, thank you. I will declare the poll closed. That concludes the formal business of today's annual general meeting.
I declare the meeting formally closed at 2:38 P.M. The results of these resolutions will be released to the ASX shortly after the AGM concludes. I now open the opportunity for questions of a more general nature from shareholders. As mentioned in my opening remarks, we can only answer questions on the basis of publicly available information. I also again ask shareholders to type in questions separately. This way, we can give all shareholders the opportunity to ask a question. Where a shareholder has submitted multiple questions, we may move to questions from other shareholders first to ensure everybody has an opportunity. Please enter your question by clicking on the Q&A button located at the bottom of your Zoom screen. Hanna, do we have any questions?
Yes, there are a number of questions submitted. Where we've received multiple questions that are similar, I'll amalgamate them into the one question, or I'll read out the broadest question, which will cover the others. Chair, the first question is, do you have confidence in the CEO? And if so, do you as chair believe you have the independence from the CEO, who's the majority shareholder, to fulfill your role without undue influence?
Thank you for the question. Yes, I and the board have confidence in the CEO. Simon Henry is the founder of DGL, and he's still the majority shareholder. We have a good working relationship with open communication, and there's no compromise on independence. I note the company has a majority of independent directors. Key decisions that we make go through me to the board for consideration, and the CEO accepts guidance and oversight. I'd also say that the board dynamic is constructive and appropriate, and the CEO respects the role of the board. He respects my independence, and I know that he respects the other directors' independence.
Thank you, Chair. The next question is, will you consider providing more regular market updates on a monthly or bi-monthly basis?
We clearly recognize the need to keep shareholders fully informed, and in particular during this critical period. We follow the ASX requirements carefully in terms of continuous disclosure of matters as they arise. I think our current preference is that we update shareholders through market announcements as key matters arise, rather than providing updates on a fixed schedule.
Thank you, Chair. Has DGL's aggressive acquisition strategy contributed to the current negative impact of the share price? It appears that the company has tried to expand too quickly at the expense of shareholder value.
That's an interesting question, and it's probably got a double-sided answer, but I'll make a comment, Simon, and then perhaps you might like to add to that. The acquisition strategy has contributed to DGL by giving DGL a wonderful set of business capabilities and assets that we can utilize to assist our 5,000+ industrial customers across Australia and New Zealand. It's positioned the company very well in the industry, but it hasn't come without growing pains. We have referred to the need to refocus, as we've done over the last 12 months, on the full integration of these businesses, which we acknowledge that we haven't done well enough to date, and we're in the process of cleaning that up.
That includes consolidating systems, removing duplication of activity so that we can get our cost base down. There is a very intense focus on that. We think it positions the company very well going forward, but it has not been without its difficulties on the way through. Do you have anything you want to add, Simon?
Thank you, Tim. I thank the shareholder for the question. We had a very clear strategy that we set out in the IPO of raising funds and moving into what I saw as a very fragmented industry and buying the necessary components to build or amalgamate a substantial industrial business. We have acquired the assets and the licenses and the geographical coverage to achieve that. We have stopped buying businesses and dramatically slowed down the rate. We are very selective now.
Now we're in the boring, tough phase of pushing those 30 businesses into one. I'm completely clear-minded about what we have to do. As I've mentioned, the majority of the heavy lifting is now done. We've invested millions and millions to bring these groups together onto one operating platform. We see the green shoots coming through now through this integration and what the business is capable of doing. Working with our senior managers and our board, we are solely focused on completing the integration, the rollout of these systems to improve our margins and improve our profit in the near future.
Thank you, Simon. The next question is, can you provide more details on the fraud matter? Why was only 70% of the money recovered, and why wasn't the matter brought before the police?
Thank you for the question. 70% of the funds were recovered. I mean, some of the funds had effectively been frittered away. They'd gone. The individual gave us security over certain key assets that the individual had, and we benefited from that in the recoveries that we made. The remaining amount, we agreed to settle the position, move the individual on. I would put in context that of the 430-odd thousand that we recovered of the fraud, we recovered the vast majority of it. The benefit of the customer relationships that we retained through that process was effectively in the millions of dollars. In terms of the commercial outcome, we think we were very much on the right side of that, and it was a good outcome in the end. In terms of involving the police, we did take advice on that.
There was not a requirement to inform the police, and we did not feel that that would assist the process in terms of either recovering funds or protecting shareholder value by moving customer relationships to others within the group.
Thank you, Chair. The next question is, does DGL expect further property sales during the financial year?
Do you want me to answer that, Tim, or are you good with it?
Sure, happy for you to answer it.
Just in the operations, no, we are not planning to sell any more properties this financial year. As we have spoken about, we are pragmatic when it comes to property. We dispose of properties that we no longer need or that are not core or key to our operations. We continue to invest in new property. We are building a purpose-built production facility in Christchurch in New Zealand. It will come on stream after Christmas. We will bring three different businesses under one roof and extract significant savings. Once again, we are just completely pragmatic to the ownership of property, of what we own, what we can rent, what we do not need, and what we need to buy.
Thank you, Simon. The next question is, are you taking measures to retain the production and skilled workers in these times, often overlooked and can cause an impact on operations when key lower-order personnel are lost?
Simon, that might be one for you.
Hanna, can you please read the question once more?
Certainly. Are you taking measures to retain the production and skilled workers in these times? This is something that is often overlooked and can cause an impact on operations when key lower-order personnel are lost.
It is a very valid question. Australia still enjoys low unemployment. Creating an inclusive, rewarding, and respectful culture across DGL is key to retaining good employees across the full spectrum of skills. Alex Wing, our COO, has done considerable work on this across the group. I think the broad culture that exists in DGL today is very positive. By and large, we do not have any problem retaining and attracting talent to the business.
Thank you, Simon. The next question is, is there any end in sight regarding the driver shortage?
I'll ask Elon Musk. No. Driving trucks is hard work. Our trucks carry chemicals. Trucks go long distances. They're big, heavy trucks. Once again, it's about creating the right culture in the business, having the right gear, and attracting and retaining skilled and experienced drivers. Everyone faces the same challenges. Those who get it right will prosper. Those who don't will wither.
Thank you, Simon. The next question is, the company has made many acquisitions, and it's making large-scale investments in new factories and equipment, including a new liquid waste treatment facility. It says it's increased its client base to include large international companies and an exporting business. This has all occurred during a period of declining profitability. The question is, over what timeframe does DGL expect an uplift in profitability reflecting the scale of these acquisitions and these investments?
Thanks, Hanna. I'll start off on that. Simon, feel free to add to it. I think we have gone through a very important transition over the last 12 months, and that period isn't over. It does involve the integration of businesses, the reduction of costs, and the better utilisation of assets. We think we're through the worst of that, and we think we're going to start to see the benefits in the second half of this financial year. In reality, they're probably going to emerge over a longer timeframe than that. There are substantial positives that we think we can drive from the acquisitions that have been made.
Thank you.
Simon, would you like to add anything?
We have made the hard choices to invest profit and free cash back into the business, to lay the foundations to build a bigger group. I have reflected on the reality that if we were to flatline the business and not invest in these systems and the integration, our profit would be higher. Our growth prospects in future years would be lower. The board and I and senior managers collectively have agreed to invest back into the business to build one efficient operational platform. This is obviously taking millions of dollars to establish. We are laying the foundations to build a really great industrial business. I'm completely comfortable with the hard decisions that we're making.
Thanks, Simon. The next question is also addressed to Simon. Other than property and ERP, can you talk about the main investments the company was and is undertaking in the recent months to strengthen the company's market position and profitability?
Thank you, Hanna. I've talked about property investments and the industrial facility that we're building in Christchurch. We've still got a significant investment in the completion of the liquid waste treatment plant in New South Wales. We have moved from dated warehouses to modern warehouses. These are multi-million dollar investments in equipment and infrastructure. We are investing in filling lines and automated filling lines and more efficient production equipment. There is ongoing investment right across the business. We are disposing of inefficient trucks and trailing gear and investing in better equipment. There is a whole raft of investment initiatives that will improve our group-wide profitability in the near and medium and long term.
Thanks, Simon. The next question is, considering the current suspension situation, does the board see themselves as buyers of DGL stock once the suspension is lifted? Should the share price come under pressure?
Look, I do not know the circumstances and the situation, and it is probably not something we should comment on. The board has in the past been supportive of DGL shares in terms of investing personal money in it. I'd expect that over time to continue, but I can't be specific about when and where and what. Thanks, Hanna.
Thanks, Chair. The next question is, when is the double-up and overhead expected to be resolved, and is DGL expecting further reductions in headcount?
Want me to answer that, Tim?
Sure, Simon. Yep.
The double-up, as it's worded in the question, we're past that peak. We're now on the downside, and the savings are coming through. Alex and I and Gagan have a well-developed budget that we are tracking to achieve. Administration costs, we still see broad terms between 30%-40% savings from where we sit today. A lot of that will be achieved over the next six months. I believe the balance will be achieved over the six months into the first half of FY 2027. We are past the peak, and now the savings are coming through.
Thanks, Simon. The next question is, can you please comment on the reason for Frank Izzo's resignation?
Simon, I'll cover that if you like. Look, after extensive consideration between the CEO and the board and a lot of discussion, we came to the conclusion that the CFO wasn't the right person in the role at this time. It's as simple as that, and we've made a change. I don't really want to go into more detail than that at this stage.
Thanks, Chair. We do have further questions, but these have already been addressed in early discussion and in the chair's responses. There are no further questions now.
Thank you, Hanna. Just giving an opportunity for any last questions to come in. If there are no further questions, that concludes today's annual general meeting.
I'd like to thank you all for your attendance and for your ongoing support for DGL. We look forward to providing further updates.