Oldfields Narrows Loss to $3.6M, Eyes Capital Raise for Recovery

• Net loss narrowed to $3.6 million from $7.3 million in FY2024
• Working capital shortages limited inventory, impacting paint and scaffolding sales
• Product recall continued to affect sales and incurred remediation costs
• Net liabilities increased to $8.0 million with significant ATO and PAM debts
• Waiver received from Pure Asset Management; capital raising planned for H1 FY2026

Financial Performance and Challenges

Oldfields Holdings Limited has reported a net loss of $3.6 million for the year ended 30 June 2025, marking a significant improvement from the $7.3 million loss recorded in the previous financial year. This narrowing of losses comes despite persistent operational challenges, including constrained working capital and the lingering effects of a product recall that began in April 2024.

The company’s revenue declined to $25.9 million from $28.1 million in FY2024, reflecting subdued sales in both its core scaffolding and consumer paint product segments. The working capital shortage severely limited Oldfields’ ability to maintain adequate inventory levels, particularly in key product categories, which in turn restricted sales growth.

Impact of Product Recall and Operational Adjustments

The product recall, which necessitated the removal of all mobile scaffold product lines from sale for much of the year, continued to weigh heavily on the company’s performance. Remediation costs and restricted inventory availability affected the first three quarters of FY2025, delaying recovery efforts. Oldfields has completed the recall process and is preparing for inventory replenishment, with the first shipment expected in October 2025.

Operationally, the company has taken steps to reduce costs, including exiting the east coast ex-hire business, which eliminated significant overheads such as staff salaries and lease expenses. These measures are expected to support a leaner cost structure moving forward.

Balance Sheet and Liquidity Position

Oldfields reported net liabilities of $8.0 million, up from $5.3 million a year earlier, and net current liabilities of $12.6 million. The company’s major liabilities relate to borrowings from Pure Asset Management (PAM) and a substantial debt owed to the Australian Taxation Office (ATO), which has been reduced from $4.65 million to $2.32 million with PAM’s assistance.

Despite breaching an EBITDA covenant under its loan facility, Oldfields secured a waiver from PAM in August 2025, providing temporary relief. The company continues to engage with the ATO, making regular payments with the goal of full settlement by the end of FY2026.

Outlook and Capital Raising Plans

Looking ahead, Oldfields is actively seeking capital investment to fund inventory replenishment and support operational recovery. The company expects to secure this funding in the first half of the 2026 financial year. Management remains confident in the Group’s ability to continue as a going concern, supported by ongoing shareholder backing and the anticipated capital injection.

The sales pipeline for scaffolding and paint products remains robust, underpinned by established international distributor agreements. Once working capital constraints are alleviated, Oldfields aims to capitalise on this demand to restore growth momentum.

Bottom Line?

Oldfields’ path to recovery hinges on successful capital raising and inventory replenishment amid ongoing financial headwinds.

Questions in the middle?

• Will Oldfields secure the planned capital investment in H1 FY2026 to restore inventory levels?
• How will the company manage covenant compliance and debt repayments with PAM and the ATO going forward?
• What is the expected timeline for sales recovery post-product recall and operational restructuring?