OLH - Oldfields Holdings

[Purple XS2]

As humble a stock as one is likely to find, but with a P/E of 8.7, and a dividend of 5.6% (DRP available), it makes all the snazzy stuff in my portfolio look like doodly-squat.

Oldfields is a paint-and-ladder supplier. (I bought a ladder of theirs in a Melbourne hardware last year. Nice ladder.)

They have a couple of statements in an A.S.X. announcement today, firstly they've taken over a garden shed business in Adelaide (OLH's home town).

Oh yeah, and they're in the process of expanding their footprint in China. Sums up this mob entirely: who needs China when there's Adelaide.

52 week high-low is 1.22 - 0.85. (the low was January 2007). Closing price this arv at 1.16.

I know this sounds like a ramp, but can anybody find reasons against having this one in the mix?

 

[YELNATS]

Re: OLH - Oldfields Holdings Limited

Oldfields is a paint-and-ladder supplier. (I bought a ladder of theirs in a Melbourne hardware last year. Nice ladder.)

They have a couple of statements in an A.S.X. announcement today, firstly they've taken over a garden shed business in Adelaide (OLH's home town).

I know this sounds like a ramp, but can anybody find reasons against having this one in the mix?

In these volatile days, sometimes it does the psyche good to survey the neighbouring landscape from a ladder and seek the solace of a backyard shed.

 

[Rainmaker2000]

Re: OLH - Oldfields Holdings Limited

Nothing wrong with a good old ramp......I've got to say more people should do the Peter Lynch thing and see the product, look up the small company behind it because that's where the small investors make their honey...........before the big guys jump on board adding premium to the price

Their ladders are too over priced for me..hehe...but then they certainly have a cosy relationship with the Wattlyl Trade outlets I've seen them in..

Seriously, the difference between residential property and shares (one difference) is that you can buy an ordinary Aussie stock like this or maybe 100 like it and you get potentially an exceptional long term investment.......whereas, if you did the same with residential property right now, you would be heading for a headache.....sure there may be some little gems out there in property but on ASX there are pastures of unfound value...for example, I found a little manufacturer the other day with a PE of 2.9.......where can you find property with that return from your loungeroom in your Pijamas

 

[Dona Ferentes]

still doing what they say:
Oldfields Holdings Limited (OLH) is engaged in
(i) importing and distribution of paint brushes, paint rollers, painter's tools and accessories
(ii) manufacturing and distribution of scaffolding and related equipment, and
(iii) hiring and erection of scaffolding and related products.

The majority of operations of OLH are conducted in Australia. Market cap $15million. Listed on ASX in 1960. A grand total of 19 trades in 2020.
https://www2.asx.com.au/markets/trade-our-cash-market/directory (sort List Date; #6 )

Managed to lose $1.5million on revenue of $24million

........... Earnings (LHS) ............................................................................. ...............................................Return on Equity (RHS) ............


2020 financial year was a year of change and transformation.
The 2020 financial results were impacted by the following:
- The scaffold division has been affected by both the building downturn as well as COVID-19. Though the revenue was marginally lower, the profitability was significantly impacted by restructuring costs and lower margin in general due to competition.
- The paint division has been less affected by COVID-19 and has benefited from the new sales channel development and introduction of new products. Revenue has increased and EBITDA was close to breakeven.
- Head office costs increased mainly attributable to increase in costs on new senior executives, restructuring and insurance costs.

During the year, the following changes have been made in the business:
- Strengthening of the senior management team.
- The organisational structure has also been reviewed. The roles and job descriptions have been redefined to increase operational efficiency. A few key positions have been replaced to refresh the company’s culture.
- The first few tranches of the new equity provided the company to fully repaid all outstanding financial liabilities with Westpac as well as the shareholder’s loan in February 2020. The remaining new equity, which was completed in April 2020, further enhanced the company’s capability to grow and develop new initiatives.
- New Board members have provided new expertise, energy and directions to the company.
- New systems and processes have been implemented though some areas are still in progress.
- Further development in new sales channels for the paint division (for example offshore markets in NZ and UK).

( Acrow ACF seem a safer bet)

 

[divs4ever]

Oldfields Secures Exclusive US Distributor

Oldfields Holdings Limited (ASX: OLH) (Oldfields or Company) is pleased to announce a significant development for Oldfields that will enhance our market presence and growth prospects and make a material revenue contribution commencing in the second half of 2024.
Oldfields has appointed Clear Port Distributors LLC as its sole and exclusive distributor in the United States of its Paint Tools and Accessory products and Oldfields manufactured scaffolding.
Clear Port Distributors will trade as Oldfields USA.
Clear Port Distributors is a private business based in Florida, recently established for the purpose of distributing Oldfields products, by an executive team with corporate and operational experience in logistics-intensive operations specifically in supply chain management, consumer packaged goods and mass-merchandise retailers in the United States.
The appointment positions Oldfields strategically in the U.S. market, providing us with a dedicated distributor to expand our reach and efficiently serve our growing customer base.
The appointment of and collaboration with Clear Port Distributors brings the following strategic benefits:
• US Market Expertise: experience and understanding of the U.S. market for Oldfields products which will contribute to our market penetration and brand visibility.
• Logistics: a distribution capability across the United States through Clean Port Distributor's 3PL strategy.
• Local US customer support: a US local presence providing more support for our US based customers.
• Market Expansion: opening doors to new opportunities and the immense potential of the U.S. market.
Oldfields has already received its first purchase order valued at USD895,000 and expects US sales to make a materially positive revenue contribution in the second half.
Oldfields expects a first half EBITDA result in the range of $400,000 – 500,000. Oldfields has entered into a legally binding exclusive Distribution and Licensing agreement with Clear Port Distributors.
The material terms of the agreement are:
Term: Evergreen 12-month terms unless notice of termination given between 3 and 6 months before end of the term in which case agreement ends on expiry of the then current term.
Exclusivity and restrictions on Distributor: Distributor has exclusive right to promote, distribute and sell paint brushes, roller covers, painting accessories and scaffolding manufactured by Oldfields within US.
Exclusivity after first year is conditional on meeting agreed sales targets.
Distributor has first right of refusal to be appointed exclusive distributor for Canada and Mexico. Distributor must not sell competing products. Oldfields IP: Distributor has a licence to use Oldfields IP in the performance of its distribution obligations including the right to carry on business as 'Oldfields USA'.
Product sales: Distributor will purchase products from Oldfields at agreed arm's length prices.
Royalty:
in addition, Distributor will also pay Oldfields a quarterly royalty based on gross sales.
Other:
The agreement also contains provisions relating to ordering, pricing, delivery and other terms and conditions of sale, marketing and promotion, record keeping, intellectual property, warranties, indemnities, limitations on liability and termination, which are commonly found in international distribution agreements of comparable size, nature and type.
We are confident that Clear Port Distributors shares our commitment to excellence and will play a pivotal role in achieving our strategic objectives.
As always, we remain dedicated to creating sustainable value for our shareholders and look forward to updating you on the progress of this exciting venture in the coming quarters.
This announcement has been approved by the Board.

For further information, contact Michael Micallef, CEO & Managing Director

i do not hold this share

this caught my eye because a buddy ( probably the last 'old school' tradesman i know ) strongly preferred their products , he is a painter/decorator

might be one to watch if the excitement wanes