Oldfields Holdings reports steady progress in its turnaround strategy, cutting costs and reallocating assets to stronger regions while preparing for a capital raise and potential acquisitions.
- Exited Victorian market to redeploy assets in NSW
- Western Australia investments driving hire and service revenue growth
- Cost base materially reduced through operational discipline
- Major shareholder provides ongoing financial support
- Order backlogs in scaffold and paint segments offer revenue visibility
Strategic Realignment and Operational Discipline
Oldfields Holdings Limited (ASX – OLH) has delivered its quarterly activity report for Q2 FY2026, highlighting meaningful progress in its ongoing turnaround strategy. The company has focused on operational discipline, asset optimisation, and targeted growth initiatives, particularly within its Paint and Scaffold divisions. Notably, Oldfields exited the weaker Victorian market segment to redeploy hire equipment to New South Wales, where demand and utilisation rates are stronger.
In Western Australia, capital investments completed in recent quarters are beginning to pay dividends, with hire and service revenues strengthening the branch’s long-term earnings capacity. This regional focus reflects a strategic pivot towards markets offering better growth prospects and operational efficiencies.
Financial Management and Cost Reduction
Cost-reduction initiatives have been a key theme, with the company removing non-essential overheads and exiting loss-making activities. These measures have materially lowered the cost base and improved operating leverage, positioning Oldfields for a more scalable and profitable business model. Despite a net cash outflow from operations of $256,600 during the quarter, customer receipts remained solid at $4.8 million.
Financially, the company continues to benefit from the support of its major shareholder and primary lender, who provided $478,000 in funding during the quarter to assist with inventory procurement, logistics, and employee costs. This backing is critical as Oldfields rebuilds inventory levels to support anticipated sales growth in the second half of FY2026.
Order Backlog and Growth Prospects
Oldfields reported scaffold and paint order backlogs of $300,000 and $152,000 respectively, which are expected to be fulfilled in the coming quarters. These backlogs provide a degree of revenue visibility and underpin the company’s optimism for improved operating performance.
The appointment of a nationally recognised corporate adviser signals Oldfields’ intent to pursue a capital raise and explore acquisition opportunities within the industrial and construction sectors. Such moves aim to create commercial efficiencies and strategic synergies, further strengthening the company’s market position.
Outlook
Entering the second half of FY2026, Oldfields is armed with a leaner cost structure, improved asset utilisation, and a strengthening sales pipeline. With committed stakeholder support and disciplined working capital management, the company is well placed to advance towards sustainable profitability. However, the success of its capital raising and acquisition plans will be key to maintaining momentum.
Bottom Line?
Oldfields’ turnaround gains traction, but upcoming capital moves will be crucial to sustaining growth.
Questions in the middle?
- What is the timeline and scale of the planned capital raise?
- Which acquisition targets are being considered and how might they impact Oldfields’ strategy?
- How will the exit from Victoria affect long-term revenue and market share?