Oldfields Holdings Limited (ASX: $OLH) business update

Oldfields Holdings Limited (ASX: $OLH) has provided a business update, including the appointment of Clear Port Distributor LLC as its sole and exclusive distributor in the United States for its paint tool, accessory products, and scaffolding offerings. The company also announced a product recall for certain scaffolding systems and provided a trading update for the 2024 financial year.

Executive Commentary on Company's Strategic Shift

The Executive Team and the Board have reviewed the Company's operations and resolved to adopt a turnaround plan to address the financial performance of the Company. This includes a strategic shift, divisional performance review, refocusing on core competencies, focus on paint and scaffolding sales, continuation of profitable SA and WA operations, introduction of trade centers, and diversification through acquisition. Actions required to implement and execute these activities are already underway and will continue to take place throughout Q1 FY25.

Summary of Oldfields Holdings Limited (ASX: $OLH) Announcement

Oldfields Holdings Limited (ASX: $OLH) has appointed Clear Port Distributor LLC as its sole and exclusive distributor in the United States for its paint tool, accessory products, and scaffolding offerings. The company has also announced a product recall for certain scaffolding systems and provided a trading update for the 2024 financial year, expecting a full year statutory result to be an EBITDA loss in the range of $400,000 - $800,000. The company's strategic shift includes refocusing on core competencies, emphasizing paint and scaffolding sales, and diversification through acquisition. The discontinuation of the East Coast Scaffolding hire and service business is expected to make a materially positive contribution to FY25 earnings.