GWA RESULTS LAY GROUNDWORK FOR FY15

Written on the 19 August 2014

GWA RESULTS LAY GROUNDWORK FOR FY15

GWA Group Limited (ASX:GWA) has posted a 43 per cent decline in full year net profit to $18.6 million, following a number of one-off costs.

The fixtures and fittings supplier attributes the loss to the $17 million Gliderol impairment charge in December 2013 and restructuring costs.

Strong sales in GWA’s bathroom and kitchen business delivered a two percent increase in revenue to $578 million, with an eight per cent increase in earnings before interest and tax of $72.3 million – compared to the previous period.

Managing director Peter Crowley says with the exception of its hot water division, bathroom and kitchen sales outperformed the market.

“We have invested in inventory for both businesses to ensure that we meet market demand as dwelling completions continue to improve,” Crowley says.

“The impact of the higher inventory levels can be seen in the cash flow performance in FY14, however this will normalise as we move through FY15.”

The company reported decreased sales in its door and access systems division, while heating and cooling sales were up.

The Gainsborough business was adversely impacted by a supplier issue, Gliderol undergoing major restructuring in the last 18 months.

Crowley says the respective hardware and garage door businesses have since showed signs of improvement.

“We have completed our strategic review and this revised strategy enables us to focus on our core businesses that will deliver growth and enable higher returns for our shareholders.

“The execution of our strategic plans, in conjunction with the forecast growth in dwelling completions activity, should deliver improved sales and profit in the year ahead.”

A fully franked dividend of 5.5 cents per share will be paid in October.


Latest News

OROTON GOES CLICKS AND BRICKS AS PROFITS SLIDE

TWO former Aussie lawyers have turned their passion for fashion into a $15 million dollar international business six ...

MANTRA'S SHARE PRICE SURGE INDICATES 'SUITORS ARE CIRCLING' THE HOTEL GROUP

THE rumour mill surrounding a high-level takeover of Mantra Group (ASX: MTR) is in full production with its shares su...

MELBOURNE CBD GEMS SELL FOR $17 MILLION, MARKING A NEW PROPERTY HOTSPOT

LITTLE Lonsdale Street in the heart of Melbourne's CBD has become a favourite for investors in 2017, following th...

CAN GOOGLE RECOVER FROM GLOBAL CONTROVERSY OVER ITS PROGRAMMATIC ADVERTISING SYSTEM?

IT'S the story that has rocked the world of advertising. The lucrative Google (NASDAQ: GOOGL) advertising system ...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter