FOS Capital Ltd has revealed a decline in revenue and increased losses for the half-year ending December 2025, impacted by significant one-off restructuring costs related to Aldrige. No interim dividend was declared, reflecting cautious management amid ongoing challenges.
- Revenue down 11.9% to $12.37 million
- Operating loss before tax at $807,437, net loss after tax $605,931
- Underlying losses exclude $795,286 Aldrige restructuring costs
- Net tangible assets per security fell from 9.9 to 8.4 cents
- No interim dividend declared for the period
Financial Performance Overview
FOS Capital Ltd has reported a challenging half-year for the period ending 31 December 2025, with revenue declining by nearly 12% to $12.37 million compared to the previous corresponding period. The company recorded an operating loss before tax of $807,437 and a net loss after tax of $605,931, marking a downturn in profitability.
Impact of Aldrige Restructuring
Underlying these headline figures are significant one-off costs associated with the Aldrige restructuring, which amounted to $795,286 before tax and $596,465 net of tax. When excluding these restructuring expenses, the underlying operating loss before tax narrows dramatically to $12,151, and the underlying net loss after tax reduces to $9,467. This distinction highlights that the core business operations are closer to break-even, but the restructuring has weighed heavily on the financial results.
Balance Sheet and Dividend Position
The company’s net tangible asset backing per security decreased from 9.9 cents to 8.4 cents over the half-year, reflecting the impact of losses and restructuring costs on shareholder equity. In line with the cautious financial stance, FOS Capital has not declared an interim dividend for this period, maintaining a conservative approach to capital management amid ongoing operational adjustments.
Looking Ahead
FOS Capital’s half-year report, reviewed by Connect National Audit Pty Ltd, signals a period of transition as the company navigates the Aldrige restructuring. While the underlying losses suggest operational stability, the sizeable one-off costs and reduced tangible asset backing underscore the challenges ahead. Investors will be watching closely for updates on the restructuring’s progress and any shifts in dividend policy as the company aims to restore profitability and shareholder value.
Bottom Line?
FOS Capital’s restructuring costs cloud near-term results, but underlying operations hint at a path to recovery.
Questions in the middle?
- How will the Aldrige restructuring impact FOS Capital’s long-term profitability?
- When might the company resume dividend payments to shareholders?
- What strategic changes are planned to reverse the decline in net tangible assets?