I think is smart to pay down debt on the expense of delaying payables.
Debt comes with an interest which seems to be 11%-14% -> significant cost savings which can be used to "repay" suppliers in the next period.
Suppliers is interest free but come with relationship/trust that is built over the years -> OMH has been in business for >20years, a steady source of revenue for its suppliers, pretty sure they negotiated and agreed to such arrangement. Furthermore, it is not like OMH does not have the future cashflow to meet these payables. "You scratch my back and I'll scratch yours" is a way of business in Asia.
Ann: 2024 Half Year NPAT US$12.9 million, page-18
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Last
37.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $283.5M | |||
| Open | High | Low | Value | Volume |
| 0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 1789 | 36.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 37.0¢ | 117262 | 3 |
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| Last trade - 16.12pm 08/11/2024 (20 minute delay) ? |
| OMH (ASX) Chart |
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