NTAW Holdings Limited (ASX:NTD) Withdraws FY25 Guidance
FY25 Guidance Withdrawn
NTAW Holdings Limited (ASX: NTD) has announced the withdrawal of its operating EBITDA guidance for the 2025 financial year. The company expected operating EBITDA to be between $47 million and $50 million, compared to $42.3 million in FY24. Revenue growth has fallen short of expectations, and the company faces uncertainty in recovering this shortfall in the current financial year.
In response to the challenging trading environment, NTAW has implemented cost-reduction measures and scaled back growth strategies.
Bank Financial Covenants
Additionally, NTAW Holdings is likely to breach its financial covenants associated with its finance facilities from the Commonwealth Bank of Australia. The covenants will be tested on 31 December 2024. The company is currently in discussions with the bank concerning a potential waiver and renegotiation of the covenant thresholds to align with current trading conditions.
NTAW is also negotiating with Goodyear regarding the timing of the final instalment payment for the opening Dunlop inventory. The company continues to manage its cash flow diligently.
This announcement was approved and authorised for release by NTAW’s Board of Directors.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.