GWA SUFFERS LOSSES

Written on the 18 February 2014

GWA SUFFERS LOSSES

 BUILDING fixtures supplier GWA (ASX:GWA) has reported an 89 per cent decrease in net profit after tax (NPAT) to $1.7 million over the previous corresponding period.

Revenue of $288 million is down one per cent from this time last year, with earnings before interest and tax (EBIT) also dropping one per cent to $34.1 million.

Managing director Peter Crowley says the loss is a result of uncommon circumstances affecting the business.

“The first half should have been significantly better than the final outcome, however a number of one-off issues impacted trading EBIT in the half.

“In light of this and as the recovery in dwelling commencement activity seen in the first half rolls into completions, which is typically where GWA products are sold, we expect a strong second half performance,” he says.

The decrease in NPAT has been blamed on the $17 million impairment charge in relation to Gliderol goodwill in December, as well as $3.6 million in restructuring costs.

“On the positive side bathrooms and kitchens, excluding hot-water, has performed strongly with market share gains as dwelling completions have been relatively flat during the period.

“Additionally, cost savings across the group which were predominantly driven by the December 2012 restructuring have been slightly above our expectations.

“Our focus is on making sure our current businesses perform at an optimum level to take advantage of the recovery in the building sector.”

GWA won’t pay an interim dividend to shareholders in April, with payments expected to resume for the 2013/2014 year.

At the time of press, GWA shares were trading at $2.88, down 8.5 per cent.

Fraser Coast entices new investors. Read here.


Latest News

SUPER RETAIL GROUP SAYS GOODBYE TO AMART SPORTS BRAND

A BRAND synonymous with Australian sporting goods, Amart Sports, will be retired from 1 November 2017. Super R...

SUPREME COURT GRANTS LEAVE FOR CLASS ACTION AGAINST DICK SMITH

A CLASS action law suit against Dick Smith has been given the green light for shareholders impacted by the company...

TECHNOLOGYONE SAYS IT WILL SUE BRISBANE CITY COUNCIL FOR $50M IF IT TERMINATES CONTRACT

ENTERPRISE software company TechnologyOne (ASX: TNE) has threatened to sue Brisbane City Council (BCC) for more than ...

WESTPAC LOOKING TO SELL HASTINGS TO CHARTER HALL

Westpac Group (ASX: WBC) has entered discussions with property investment group Charter Hall (ASX: CHC) to sell Ha...

Related News

SUPER RETAIL GROUP SAYS GOODBYE TO AMART SPORTS BRAND

A BRAND synonymous with Australian sporting goods, Amart Sports, will be retired from 1 November 2017. Super R...

SUPREME COURT GRANTS LEAVE FOR CLASS ACTION AGAINST DICK SMITH

A CLASS action law suit against Dick Smith has been given the green light for shareholders impacted by the company...

TECHNOLOGYONE SAYS IT WILL SUE BRISBANE CITY COUNCIL FOR $50M IF IT TERMINATES CONTRACT

ENTERPRISE software company TechnologyOne (ASX: TNE) has threatened to sue Brisbane City Council (BCC) for more than ...

WESTPAC LOOKING TO SELL HASTINGS TO CHARTER HALL

Westpac Group (ASX: WBC) has entered discussions with property investment group Charter Hall (ASX: CHC) to sell Ha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter