Quickstep Holdings Limited (ASX: QHL) Annual General Meeting Updates
Strategic Focus and Financial Performance
Quickstep Holdings Limited (ASX: QHL) has reported significant changes in strategy following a recent Annual General Meeting. The company plans to optimise its existing core Structures business while exiting its loss-making Maintenance, Repair and Overhaul (MRO) operations. This shift aims to restore profitability and enhance cash flow.
Interim CEO Demi Stefanova highlighted the negotiation of a stable demand scenario with customers in light of a predicted drop in short-term demand for Structures products due to global supply chain issues. Despite a 14% revenue decline in the first quarter compared to the previous financial year, EBITDA surged by 78%, demonstrating operational success. Price increases with customers will be implemented progressively over the next six months, reinforcing profitability.
Closure of MRO Business and Future Outlook
The company concluded that its MRO business required significant investment to reach critical operational volume and subsequently decided to shut it down at the end of October. This closure is expected to mitigate further losses moving forward.
Quickstep has also received a takeover approach from ASDAM, an Australian defence conglomerate. The company’s Board is currently evaluating this offer to determine if it presents a more favourable outcome for shareholders compared to remaining independent.
“While recent times have been challenging, I want to acknowledge the contributions of our employees who have been pivotal during this transition. We are committed to delivering the best possible outcomes for our shareholders,” said Stefanova.
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